Swiss bank UBS announced job cuts for high-paying investment banking staff on Tuesday (October 22).
Third-quarter net profit fell 16% due to a poor performance in the division, And put the group's 2019 profit goals further out of reach.
Chief Executive Sergio Ermotti announced a further $90 million in annual cost savings at the investment bank.
It follows a prolonged performance dip as wealthy clients hold back from trading and negative rates eat into margins..
The bank's share price is down 16% in the past year and hit a six-year low in August.
One positive came through its flagship global wealth management unit.
The bank brought in net new money of $15.7 billion through the division, which recently hired former Credit Suisse high-flier Iqbal Khan as a joint manager.
City Index Market Analyst Ken Odeluga.
(SOUNDBITE) (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "Investment banking is very, very challenged and we can now get an idea as to why there was so much drama over this new hire for the wealth management division, which was the revenues that shone in UBS's earnings." UBS leads a charge of European bank earnings for investors to consider.
With the likes of Credit Suisse due to report soon.
(SOUNDBITE) (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "There's clearly a push at UBS and Credit Suisse and other major European banks to bring a greater focus on wealth management and that sort of implicates particular regions, particularly in Asia where we see the bulk of the growth from UBS' previous quarter coming from." British banks Barclays and RBS due to reports results later this week.
While Credit Suisse and Deutsche Bank are due to follow suit on October 30th.