Elena Logutenkova

Credit Suisse Group AG is poised to report its biggest quarterly loss since the collapse of Lehman Brothers Holdings Inc. after being fined $2.6 billion for helping American clients evade taxes.

Credit Suisse Group's top officials told investors that Switzerland's second-biggest bank is pushing to resolve the U.S. probe into whether it helped American clients evade taxes.

UBS AG, Switzerland’s largest bank, said it plans a special payout for investors on top of higher dividends after it reaches capital targets this year. The shares rose.

Credit Suisse Group may be close to resolving a U.S. tax-evasion probe with an agreement that might include a penalty of more than $1 billion, after creating a separate entity last year to house the businesses involved.

UBS is expanding its wealth management business in Asia and emerging markets by hiring client advisors, Juerg Zeltner, who heads the division globally excluding the U.S. and Canada, said in an interview.

Credit Suisse Group, Switzerland's second-biggest bank, said losses in the fourth quarter were larger than previously reported after it booked more charges for a probe into tax evasion by U.S. clients.

UBS AG’s Chief Financial Officer Tom Naratil will meet next week with Knight Vinke Asset Management LLC, an investor that called for a spinoff of the lender’s investment bank, two people familiar with the matter said.

UBS AG is always looking at all shareholder suggestions, Chief Executive Officer Sergio Ermotti said, after investor Knight Vinke Asset Management LLC called for a spinoff of the lender’s investment bank.

UBS AG reported first-quarter earnings that beat analyst estimates on higher revenues at the investment bank and in wealth management.

Credit Suisse Group AG will probably post higher profit than UBS AG for a fourth straight quarter when the largest Swiss banks report results over the next week.

“The success of the wealth-management business is fundamental to where the stock goes over the next five years,” said Christopher Wheeler, a London-based analyst with Mediobanca SpA, who has a neutral recommendation on UBS shares. “It’s the core business, and a number of other businesses feed off it, not the least asset management.”

UBS still sees a “challenging environment” for its wealth management business as clients remain reluctant to invest on a large scale, Chairman Axel Weber said.

UBS AG posted a second straight quarterly loss after booking a fine for trying to rig global interest rates and costs tied to job cuts.

UBS AG was fined 29.7 million pounds ($47.6 million) by the U.K. and told by the Swiss that it may have to increase capital levels for operational risks as regulators levied penalties after Kweku Adoboli’s $2.3 billion trading loss.

UBS AG, Switzerland’s largest bank, will cut as many as 10,000 jobs companywide as the trading business shrinks, a person with knowledge of the plan said.