UBS Sets Medium-Term Profit Goals

Updated from 1:45 a.m. EST

ZURICH, Switzerland (TheStreet) -- UBS(UBS Quote), the Swiss banking giant, said it aims to achieve over the next three to five years annual profit before taxes of about 15 billion Swiss francs ($14.85 billion) and return-on-equity of 15% to 20%.

The bank's profit goals were part of a presentation UBS made to investors Tuesday regarding its transformation plans.

UBS also said it is targeting a cost-to-income ratio of 65% to 70%.

UBS said it intends on remaining the No. 1 bank for wealthy clients as it tries to stem the tide of client outflows at its private bank.

UBS intends to be the leading "client-focused global bank," the bank said in statements from a presentation of its turnaround plan to investors Tuesday. It plans to strengthen its position as the No. 1 bank for high net worth and ultra high net worth private clients and remain No. 1 in Switzerland.

"The transformation we are undertaking is a fundamental one and it will not happen quickly, said CEO Oswald Gruebel. "I am determined, however, that we build a firm for sustainable profit and not one to focus only on short-term expectations." Grübel said.

UBS said it has set medium-term targets for its wealth management and Swiss Bank division of pretax profit of 6.5 billion francs and operating income of 14.3 billion francs.

UBS said for its wealth management operation to meet medium-term targets it plans to address a decline in margins and transform its offshore business, among other strategies, while at the same time reversing client outflows.

Earlier this month, UBS said it swung to a loss in the third quarter, hit by charges and client withdrawals from its private bank.