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Tough action wasn't forthcoming at UBS. In March, CEO Ermotti announced cuts amounting to $300 million this year. The investment bank is undergoing a makeover that began in September and which will yield cost savings in coming years estimated to reach double-digit million dollar figures. Yesterday, the company mentioned further measures in a rather vague manner.

Ermotti wants to maintain a fair balance between growth initiatives and efficiency measures – but a look at the cost-income ratio shows that the operative business is not how it ought to be. The ratio worsened to a reading of 80.6 percent, compared with 77 percent a year ago. The trend is negative, which suggests that a decisive shift of focus maybe on the cards.

Standard & Poor's, the powerful rating agency, also recently reported that European banking was weighed down by persistently high costs and struggling to adjust the business model. The agency warned it might have to adjust its ratings if the industry failed to take action.

Webermotti's Intentions to Stay

The UBS bosses don't intend to be rushed into action and Ermotti doesn't have to fend off the advances of a raider. He also can count on Chairman Axel Weber's support. Webermotti are in any case said to continue through 2022 – together.

But with the stock not showing much sign of recovering, the fate of Ermotti may depend on shareholders' patience. The annual general meeting in April refused support for the handling of the trial in France that stands to cost the bank billions of euros.

An Easier Ride for Successor?

A successor of Ermotti might find it easier to apply tough measures as the example of Quinn at HSBC showed. Measures that might include the sale of whole divisions and cuts of thousands of jobs. A horror scenario for bankers at UBS, but probably something that might spur the stock to recover lost ground.