UBS seen announcing 1,900 new job cuts: report

ZURICH (Reuters) - Swiss bank UBS may announce plans to cut another 1,900 jobs in its investment banking, equities and fixed income units at its shareholder meeting on Thursday, Bloomberg said on Wednesday.

The cuts would represent abut 10 percent of the total investment banking staff, Bloomberg said, citing two people familiar with the matter. UBS has axed about 7,000 jobs since 2007, mostly investment banking and fixed income.

The job cuts would come on the heels of 1,100 job cuts at Britain's HSBC and on top of more than 80,000 job losses across the banking landscape in the past 18 months. UBS declined to comment on the report.

UBS may also detail possible new writedowns before the shareholder meeting but could try to present them as a turning point as they will be smaller than in previous quarters, analysts say. The bank did not issue any statement on Wednesday.

Analysts expect on average the bank's new writedowns to be in the region of 3 billion Swiss francs ($2.69 billion) for the second quarter, something UBS could absorb given the current strength of its capital base.

UBS shares were up 3.7 percent at 19.15 Swiss francs by 0902 GMT, compared to a 1.0 percent firmer DJ Stoxx European banking index, as the sector gained on hopes a U.S. bailout plan for Wall Street will be salvaged.

JP Morgan said on Wednesday it expects UBS to incur 2.7 billion euros ($3.81 billion) in pre-tax writedowns in the second half, less than its forecasts for its peers Lloyds TSB, Deutsche Bank and Barclays.

The extraordinary shareholder meeting on Thursday was called to elect four new members to the board.

SHAREHOLDER UPDATE

UBS's new chairman Peter Kurer has promised better governance and slimmer bonuses after UBS was forced to write down $42 billion, more than any other bank in Europe, due to its large exposure to U.S. toxic assets.

He will present the shareholders with plans announced in August to downsize the troubled investment banking business and separate it from its prized wealth management arm.

Analysts would also like to see UBS update investors on whether it has been able to stop a hemorrhage of funds at its private banking and asset management businesses, as clients have flocked to local rival Credit Suisse and smaller Swiss players.

One shareholder who may not be able to vote at the meeting is former UBS Chief Executive Luqman Arnold, who made headlines earlier this year when he demanded a the split of the investment banking business from wealth management.

Arnold's investment company Olivant said on Wednesday it was in contact with the administrators of collapsed bank Lehman Brothers to secure its 2.78 percent stake in UBS, which the fund holds through Lehman's prime broker.

Also on Wednesday, the New York Times reported that Swiss authorities are expected to hand over confidential data on wealthy American clients of UBS to the U.S. Justice Department, citing people briefed on the matter.

UBS shares have lost some 60 percent of their value this year, triggering speculation the bank may become a takeover target for larger rival HSBC or may merge with Credit Suisse.

At 31 billion Swiss francs, its exposure to the U.S. residential market is greater than other European banks.

While the value of some toxic assets has continued to deteriorate, analysts said UBS stands to benefit from a decline in the value of its own outstanding loans.

The bank has also rebuilt its capital base -- tapping investors twice this year for nearly $30 billion of extra capital -- and stands to benefit more than others if the massive U.S. bailout plan is salvaged, some analysts say.

(Editing by Sharon Lindores)

($1=.7079 Euro)