) U.S. based brokerage unit - UBS Wealth Americas - is eliminating
around 75 sales assistants, per a
report. This is a part of the company's existing cost-containment
The layoff process, which began approximately a week ago, is
presently underway. The concerned employees serve as client service
associates for around 7,000 financial advisers of the firm. Aiding
the productivity of brokers, they are responsible for handling
customer inquiries and documentation work. Among them, some get
remuneration directly from advisers while the firm compensates
Amid several litigation issues and internal inefficiencies, the
Swiss banking giant is striving hard through restructuring
initiatives that focus on building capital levels to achieve
operational efficiency and reduce risk-weighted assets (RWAs).
Last month, UBS AG reported decent second-quarter 2014 results.
Driven by prudent expense management, the company's net income
attributable to shareholders stood at CHF 792 million ($890.8
million), up from the prior-year quarter earnings of CHF 690
million ($731.8 million). Operating expenses decreased 7.8% year
over year to CHF 5.9 billion ($6.6 billion).
In its second-quarter earnings release, UBS AG mentioned that the
absence of steady improvements related to unresolved European
economic problems, U.S. fiscal and monetary issues and the ongoing
global concerns, as well as the uncertainty at large and
seasonality, could impact the client activity levels and trading
volumes. However, with the execution of its strategies, the company
expects to generate sustainable returns for shareholders.
UBS AG currently holds a Zacks Rank #5 (Strong Sell). Some
better-ranked stocks in the foreign banks space include
Argentina-based BBVA Banco Franc (
), Brazil's Itau Unibanco Holding SA (
) and South Korea-based KB Financial Group, Inc. (
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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