A rising tide is lifting all boats in Zürich.
UBS reported an overall fourth-quarter net profit of 917 million Swiss francs ($1 billion) compared with a loss of roughly 1.9 billion francs in the same period a year earlier, when results were undercut by billions of dollars in charges for matters including a settlement of allegations that employees conspired to rig interest rates.
In light of its recent progress, UBS said it raised its overall performance award pool for 2013 by 28% to 3.2 billion francs, the first increase since 2012. The move signals a renewed confidence, and willingness to spend money on retaining talent. In 2012, as UBS digested bad news including a $1.5 billion settlement of charges that employees conspired to rig interest rates, UBS investment bankers and top executives saw the bank cut its performance award pool to a level 42% lower than it had been just two years earlier.