Staff costs at UBS' investment bank plunged 90% in the fourth quarter and more than halved over the entire year on the back of "significantly lower performance-related compensation" as annual pre-tax losses at the division doubled to Sfr33.7bn (€22.4bn).

Average pay for staff in the division also fell by nearly half with compensation last year averaging Sfr284,000 for staff working in the investment bank, down from more than Sfr500,000 in 2007, as UBS exercised claw-back clauses and slashed its bonus pool.