UBS confirmed investors’ worst fears yesterday as it unveiled an estimated loss of almost SFr2bn (£1.2bn) for the first quarter and a cull of more than 11% of its workforce.

The figures, which were worse than expected, punctured growing optimism about a recovery in banking stocks after this week’s bet ter than forecast results from Goldman Sachs, and reminded investors of the risks still confronting big banks in the credit crisis.

The results were delivered by the bank’s new chief executive, Oswald Grübel, the veteran Credit Suisse chief who emerged from retirement to run UBS seven weeks ago.

Financial Times