UBS slumps to £2.05bn

DUD loans, losses on private equity and the costs of acquiring US brokerage PaineWebber dragged full year net profits at Swiss bank UBS down 36% to Swfr5 billion (£2.05 billion). Bad loans cost the bank Swfr498 million in 2001 while its portfolio of private-equity investments was Swfr287 million lower. Pre-tax profits at investment banking arm UBS Warburg declined 15% to Swfr4.3 billion.

Staff bonuses were slashed by 23% last year and the total dividend is pruned from Swfr2.03 to Swfr2.