UBS Cuts Asia Bonus Pool

UBS' bonus pool for investment bankers in Asia is poised to fall about 8 percent, «Bloomberg» reported, quoting people familiar with the matter. A fall in equity offerings in the last quarter affected fees, the outlet reported.

Managing directors will bear the brunt of the cut, and more of the bank's executive directors – the management layer just below the MDs – will get no bonus for 2018 compared with the previous year, one of the people said.

The shrinking bonus pool for Asia's senior dealmakers comes after a rise for 2017. Then, bonuses reflected a perking-up of deals as much as UBS' keenness to keep bankers devoted to building business in China. Despite the cut in the top ranks, junior bankers may still get raises for 2018, according to media reports.

A drop in Asian indices led to a drop in stock issuance in the fourth quarter, when UBS' investment bank swung to a loss with its traditionally strong equities franchise as well as its advisory services especially hard-hit.