Fee income at UBS under pressure

The news that UBS would make a first-quarter loss of SFr2 billion $1.76 billion had already been flagged by the Swiss bank at its annual general meeting on April 15, as had the fact that the loss arose largely from trading losses in the investment bank. On the same date, UBS also re-affirmed its commitment to investment banking, silencing -- at least temporarily -- many who had been vocal that a spinoff of the investment banking division was the best way to restore confidence in the beleaguered bank.

Detailed results released yesterday contained no negative surprises, but did confirm what many specialists have been suggesting -- that the heyday for fee-based revenues is over, at...