UBS cuts bonus payments by €2.5bn

UBS plans to cut first-half bonus payments to its employees by 4 billion Swiss francs (€2.5bn), Swiss newspaper Sonntag CH reported on Sunday without disclosing its sources.

For 2007, the bank had paid in total 12 billion Swiss francs in bonuses, despite substantial writedowns and a capital hike caused by the subprime crisis.

A spokesman for the Swiss bank declined to comment on the report but said that bonus payments will “certainly be lower”. The cutbacks will mainly affect UBS’ investment banking and asset management staff, the newspaper said.