UBS has said it is anticipating further losses totalling up to Sfr400m (€265m) from UBS Capital, its private equity arm, taking pre-tax losses for the year to Sfr682m.

The loss would be equal to 12% of a portfolio said to be worth Sfr5.7bn. The bad news comes just two weeks after the Swiss bank postponed its proposed plans for independence for its private equity arm and said goodbye to Pierre de Weck, UBS Capital's chief executive. The postponement and departure prompted widespread market speculation that all was not well with UBS Capital's portfolio.