Vision impaired

21 January 2020 By Liam Proud Follow @liamwardproud

The $46 bln bank’s shares fell after CEO Sergio Ermotti announced vague returns goals. He may be cautious about low rates, or pinning his hopes on a wealth management push rather than cost cuts. If that doesn’t pay off, Ermotti – or his successor – will have to wield the axe.

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UBS on Jan. 21 said it generated $28.9 billion of revenue in 2019, compared with a mean estimate of $29 billion in a Reuters poll of 12 analysts. Pre-tax profit of $5.6 billion was roughly in line with the mean forecast.

The bank run by Sergio Ermotti said it was aiming for a 12%-15% return on common equity Tier 1 capital ratio between 2020 and 2022, and a 75%-78% cost-income ratio. That compared with a 12.4% return on CET1 in 2019 and a cost-income ratio of 80.5%.

UBS shares were down 5% at 0900 GMT on Jan. 21.

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