UBS will reduce its overall cost base by 22% to Sfr23.5bn (€15.4bn) against levels struck in the second quarter of this year, according to analyst Huw van Steenis of Morgan Stanley.

Costs at this level will be well below an earlier target of Sfr28bn, struck before Thursday's bailout of bad debt positions by the Swiss government, which will end up with a stake in UBS equivalent to 9%.