UBS Group is reportedly moving to wind up its investment-banking operations in South Africa after sacking a number of employees in the country.
The Swiss banking giant has laid off around eight deal makers who worked out its South African office, Bloomberg reported citing unnamed people with knowledge of the developments.
According to the sources, the ‘conservative approach’ is part of UBS’ cost cutting measures.
The bank is planning to cater to its corporate clients in the region from its London office, they added. It will also retain its other capabilities in South Africa, including research and trading.
A UBS spokeswoman told the new agency that the bank is not completely shuttering its South Africa investment banking operations.
She said: “We remain committed to our business in South Africa and retain a significant presence in the region.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
UBS reported a surprise jump in profits in Q3 2021, aided by strong performance at its wealth and investment units.
At the time, the bank said that it expects its Q4 profits to be affected by reduced client activity.
Earlier this year, a report by Reuters said that UBS was planning to shut down its brokerage in Mexico, which is considered to be Latin America’s second largest economy.
In 2018, Credit Suisse shuttered its operation in South Africa with plans to serve its clients in the region from Europe and Dubai.
Recent South African moves by other companies
In August, US-based ethical investment platform Wahed Invest announced plan to expand its services to the South Africa, after securing a licence from the FSCA to offer investment services in the country.
In July, Barclays was awarded a Financial Advisory and Intermediary Services licence by the South African financial regulators.
The licence enabled the firm to offer Barclays Private bank products and services in the country.