Taking a bite out of Swiss bankers' bonuses

Credit Suisse cuts bonuses to pay UK tax, UBS told by Finma to reduce payout

Migros takes in former big bank clients

Zurich, Switzerland (GenevaLunch) – Switzerland’s two largest banks will be paying out bonuses, but the amounts are shrinking. Credit Suisse, has told several media 19 January that its overall bonus pool will shrink by 5 percent as it reduces payouts to senior managers to cover the new UK bank tax. The UK has announced it will levy a 50 percent tax on bonuses over £25,000, a one-time charge. Some 400 senior managers in the UK will have their bonuses cut up to 30 percent, Bloomberg reports.

UBS, for its part, will hand out bonuses of about CHF3 million rather than the CHF4m it planned, following discussions with bank regulator Finma, although neither have confirmed details or amounts, Reuters reports.

Migros Bank benefits from money leaving big banks

Migros Bank announced Monday 18 January that it had 59,000 new private clients, with an inflow of CHF1.5 billion francs. The new money under management is linked by observers to the outflow of funds from Switzerland’s big banks and in particular UBS. Migros Bank, which is part of the Migros Cooperative Group, showed an 8.6 percent increase in gross profits.

Links to  other sites: “Preserve bonuses, let shareholders decide”, Fernandes at IMD, Le Matin (Fre), Migros Bank, Reuters, WRS (radio interview with IMD’s Nuno Fernandes)

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