UBS's second-quarter results from fixed income and asset management plunged as the total bill for closing the Dillon Read Capital Management hedge fund unit in the wake of mounting trading losses topped Sfr750m (€457m).

UBS, which called the fixed income performance "unsatisfactory", confirmed in its quarterly results today it took a charge of Sfr384m to close Dillon Read, run by former investment banking chief executive John Costas. The business has now been closed, with Sfr1.5bn of third-party funds returned to clients, and the legacy trading positions run by the investment bank.