UBS took charges of 4.4 billion Swiss francs on exposures linked to US sub-prime mortgages and has confirmed that it will be difficult to retain all of its employees.
Prior to this announcement, UBS had to refute experts' claims that it faced a massive fourth-quarter writedown to the total of $8 billion.
Analysts predicted this figure despite a spokesman telling sources that the bank would adhere to its guidance of turning a group profit.
"UBS does not expect writedowns greater than those implied in its outlook which means writedown numbers like $8 billion are not expected," the spokesman confirmed.
He added that UBS would not employ the tactic of holding back further writedowns in order to spread charges over subsequent quarters.