UBS has been applauded by investors for taking a knife to its investment bank’s balance sheet over the past three years. But did it cut back too far? Yes, suggests Tidjane Thiam, who is now slicing into rival Credit Suisse, but not to the bone.

As evidence that UBS had cut too far, Thiam pointed out that UBS postponed profit targets when it announced third-quarter figures. He also could have noted UBS's decision to replace its investment bank's current limit on risk-weighted assets with a "target" more than 20% higher.