UBS to target 10-15 percent return on equity

UBS will cut its return on equity target by 5 percentage points to 10-15 percent at an investor day next month when the Swiss bank is expected to announce shrinking its investment bank, a newspaper reported on Sunday.
The SonntagZeitung said the new target would be announced by Sergio Ermotti who took over as interim chief executive last month after Oswald Gruebel stepped down over the $2.3 billion unauthorised trading scandal.
UBS declined to comment on the article.
Two years ago, Gruebel set a medium-term return-on-equity target of 15-20 percent along with other ambitious forecasts which he had already been forced to abandon in recent months as the UBS investment bank failed to deliver.