UBS signalled on Tuesday that it intended to retain its investment banking operations in spite of reporting the biggest loss in Swiss corporate history, a further swathe of job cuts and swingeing bonus reductions.

Europe’s biggest casualty of the credit crisis said it lost nearly SFr20bn ($17bn ) in 2008. It said it would axe a further 1,500-2,000 investment banking jobs, taking employment to 15,000 – about one third less than the peak of almost 23,000 in the credit boom.