UBS chief sees pay packet jump 11 per cent while bonus pool cut for bankers

The pay packet included his base salary and cash performance award payments granted during the year, and was 11 per cent higher than the 11 million Swiss francs (£9.8m) he pocketed in 2021.

The bank, which operates globally, raked in a net profit of 7.63 billion US dollars (£6.8bn) in 2022, up 2 per cent on 2021, after finishing the year with a record volume of loans and deposits across its customers.

However, bankers across UBS saw their compensation levels cut over the year.

The total bonus pot hit 3.3 billion US dollars (£2.9bn), down 10 per cent from the 3.65bn US dollars (£3.25bn) awarded over 2021.

Bonuses generally reflect the group’s financial performance, as well as the performance of certain divisions, teams and individuals, the bank said.

It came despite the total bonus pool for UBS’s group executive board increasing by 2 per cent in Swiss franc terms.

UBS also revealed that it was “making progress” towards its goals of increasing female and ethnic minority representation across the bank.

Five of the 12 members of its group executive board, and four of the 12 members of its board of directors, are women, it said.

Women held 28 per cent of director and above roles globally as of the end of 2022, and ethnic minority employees held 23 per cent of director and above roles in the UK.

Looking ahead for the global economy, UBS said it expects inflation to be lower at the end of this year, with higher interest rates weighing on economic growth and earnings.

“Geopolitical events look likely to remain a concern for investors,” the bank cautioned, given Russia’s war in Ukraine and tensions between China and the US.

“We expect 2023 to be a year of inflections, as investors try to identify turning points for inflation, interest rates, economic growth and financial markets against a complex geopolitical backdrop,” it concluded.