UBS: perky profits, but not huge hiring

Over the last two years, UBS in Australia has seemed almost decoupled from its troubles in Europe and America. But while recently revealed results serve as a further show of financial strength, the bank's recruitment remains steady rather than spectacular.

UBS's domestic operations posted a fourfold increase in net profit for the 2009 calendar year, according to new figures from the Australian Securities and Investments Commission.

The firm had the largest share of the almost $100bn worth of placements, share purchase plans, rights issues and floats on the Australian sharemarket last year. However, it gave up top spot on the mergers and acquisition table to rivals Goldman Sachs JBWere and Macquarie Group.

UBS chose not to comment on its hiring intentions, but a leading Sydney-based recruiter says the bank has no immediate need to aggressively hire in investment banking.

"Their team is well placed in terms of staff and they saw little turnover post bonus this year. This is true across ECM as well as M&A, including the industry teams," comments Victoria Biggs, a partner at Platinum Pacific Partners.

Earlier this year, industry watchers raised doubts about UBS's ability to retain key staff because of bonus reforms, but the firm didn't suffer too badly, despite some high-profile defections such as top corporate Mark Burmeister moving to Morgan Stanley.

However, as a top-tier bank with sought-after staff, UBS faces a renewed threat of replacement recruitment as the job market becomes more competitive.

"General industry headcount turnover in M&A could be high, with boutique M&A entrants and aggressive expansion by existing banks such as Merrill Lynch. UBS might need to hire simply to replenish poached M&A bankers," says one recruiter, who asked not to be named.

He adds that UBS is already hiring in funds management and private banking. "The local franchise performed relatively well in the GFC and is generating good revenue."