UBS reviewing goals in difficult conditions: report

A worker climbs on a ladder under the logo of the Swiss Bank UBS at the headquarters of the company in Zurich on May 26, 2011.

Credit: Reuters/Arnd Wiegmann

ZURICH. Sun, July 3, 2011 9 pm EDT

ZURICH (Reuters) - Swiss UBS is yet to difficult market conditions after a hard second quarter and reviews its objectives in the medium term, President of the Bank said on Sunday.

Kaspar Villiger also notifies the interview with SonntagsZeitung the Switzerland that the Bank is faced with winds of the currency.

"The strong Swiss franc is also a risk for us." "We have no interest in a strong franc that our company is suffering from this", said Villiger.

When asked if the Bank would be able to achieve its objectives in the medium term, including a profit before tax of approximately 15 billion Swiss francs ($17.8 billion), said Villiger: "(Chief_Executive_Oswald) Gruebel has always emphasized these objectives were based on an assumption of market and regulatory framework of earlier."

"Now the market environment has deteriorated significantly and the regulatory environment is significantly different." "But we are convinced that we will be able to earn returns in line with the market", he said.

The Bank is now a range of factors into consideration when looking at its objectives in the medium term as the evolution of the regulatory environment and the volatility of the market conditions. Villiger said that the Bank would be updated to investors at the appropriate time, possibly in November of this year.

Further cost reductions were also inevitable, Villiger said, as the prospects for growth have been muted in the foreseeable future.

UBS already said that it is cutting about 500 members of the technical staff, while Britain HSBC Holdings Plc, Lloyds Banking Group Plc, the Italy Banco Popolare, Switzerland Credit Switzerland and Goldman Sachs have all said that they will shed jobs.

"I also can't rule out more job losses," Villiger said, but added that the Bank is seeking to have to develop in some markets, such as the Switzerland, where he continues to try to regain market share and to build its reputation after the financial crisis.

A tough second quarter earnings, dragged down by the woes of sovereign debt in Europe and in the commercial trac of investment banks is inciting to a lot of cutting in areas where the income was disappointing.

Villiger said also in the interview, there was no plan for UBS to sell its U.S. business and the UBS Investment Bank is a key component of its business.

"The Centre of our strategy is the business of wealth management." "To do this, we need a global, competitive investment bank," he said.

"The U.S. business was disappointing in the past, but in the first quarter, he managed the turnaround." We have not yet reached our goal, but we are on the right track. A sale is not a subject, "he says.

Villiger has refused to give any idea of how long Gruebel could remain at the head of UBS, saying that the change of generation was a task mid-term.

UBS, said last week he would appoint Weber at the Board of Directors at the annual general meeting in may 2012, and that he should take over as President of 70 years Villiger in 2013.

As Villiger, Gruebel was reduced from his retirement to clean up the Bank.

(Reporting by Katie Reid;) (Editing by testament Waterman)