AFP, Zurich :Swiss banking giant UBS Tuesday reported a huge swing back into profit for 2013, reaping the rewards of a radical overhaul launched under pressure the previous year. UBS said that its net profit of 3.2 billion Swiss francs (2.6 billion euros, $3.6 billion) for 2013 was a vindication of its ongoing shakeup, after a 2.4 billion franc loss the previous year fuelled by regulatory fines.Chief executive Sergio Ermotti said 2013 had been a “transformational” year for UBS. “A year ago, we said we would further adapt our business to better serve clients, reduce risk, deliver more sustainable performance and enhance shareholder returns,” said Ermotti, who took the helm in 2011 of a bank with an image tarnished by scandals.”I am pleased to report that in 2013 we accomplished all those goals. We finished the year ahead of the majority of our performance targets and will continue to execute our strategy in a disciplined manner in order to ensure the firm’s long-term success.”Its role in an international scandal concerning the rigging of the Libor interbank interest rate by key players in the sector saw UBS get hit with a massive fine by regulators.And its investment bank found itself in the spotlight due to a massive rogue trading case in Britain.UBS also took huge losses from the financial crisis, when losses linked to US subprime debt forced Swiss taxpayers to come to the rescue.In common with Swiss banks in general, the bank is having to adjust to a new business environment, notably owing to an opening up of Swiss banking secrecy forced by the US probes and similar investigations elsewhere. However, unlike a string of other Swiss banks, UBS has already reached an agreement in the United States over its abetting of tax evasion by Americans citizens, paying a huge fine.In October 2012, UBS announced a massive reorganisation.It decided to shift the focus back to wealth management, its traditional business, and to reduce the clout of its investment bank, which henceforth would centre on trading in shares, currencies and precious metals.The UBS wealth management arm posted a 17-percent increase in pre-tax profit against the outcome in 2012, reaching 2.4 billion Swiss francs.
