Switzerland's largest bank, UBS, estimated on Wednesday that it would suffer a loss of almost 2 billion Swiss francs (about US$1.75 billion) in the first quarter of this year.

UBS expects big loss, to cut 8,700 jobs [CFP]

The bank, which has been hit severely by the financial crisis, also announced that it would cut 8,700 jobs worldwide by the end of 2010, more than 10 percent of its total workforce.

According to a statement issued ahead of its annual shareholders meeting, UBS said its first quarter loss seems mainly from a negative contribution totaling roughly 3.9 billion Swiss francs (US$3.4 billion ) due to losses on previously disclosed bad investments, credit loss expenses and adjustment in values of toxic assets.

UBS expects big loss, to cut 8,700 jobs [CFP]

UBS also announced that it would close the first quarter with an overall outflow of net new money.

The bank's wealth management division recorded a net outflow of about 23 billion Swiss francs (US$20 billion) in the first quarter. This occurred mainly after UBS agreed to release data of clients to the U.S. authorities, indicating that the Swiss banking secrecy have to be eased under increasing international pressure to crack down on tax havens.

UBS also said it plans to "adapt its size to the changed market conditions and lower levels of business." The bank is planning to have cost savings by the end of 2010 of about 3.5 to 4 billion Swiss francs (US$3.1 to 3.5 billion) compared to 2008 levels.

The bank also seeks to realize substantial cost savings in all areas, which means major job cuts are unavoidable, the statement said.

UBS expects big loss, to cut 8,700 jobs [CFP]

The bank currently employs 76,200 people worldwide.

"We know where we have to set to work. It will be a long road back to success without any quick fixes. Rather, we will move forward step by step in a rigorous and disciplined manner," UBS CEO, Oswald Grubel said.

(Xinhua News Agency April 16, 2009)