Risky loans hit UBS in stagnant economy

UNION Bank of Switzerland, the nation's biggest bank, is to take a one-time charge of three billion Swiss francs (£1

UNION Bank of Switzerland, the nation's biggest bank, is to take a one-time charge of three billion Swiss francs (£1.38 billion) to cover rising loan risks from the stagnant Swiss economy, causing a net loss for 1996. UBS will cut 800 jobs or 3.7 per cent of its Swiss workforce as part of a domestic restructuring plan. It said it would post a 1996 loss of about 500 million Swiss francs rather than a net profit of 1.8 billion due to the charge for risky loans and the restructuring costs.