UBS AG plans to pay out 34% more in bonuses for 2009 as the biggest Swiss bank reports its first quarterly profit. The bonus pool amounts to 2.9 billion Swiss francs ($2.7 billion), Andreas Kern.

Chief Executive Officer Oswald Gruebel, promised to stick to a policy of paying market-level compensation.

After reporting a net loss of 21.3 billion francs and receiving a 6 billion-franc lifeline from the Swiss government, UBS slashed 2008 bonuses 78 percent. It had paid 9.92 billion francs in 2007 bonuses.

The bank would make fixed salaries a higher proportion of employees.

With guidelines from the Swiss regulator, UBS will introduce claw- back provisions to allow taking back parts of bonuses allocated to members of the executive board, divisional top management and certain other employees.

Funds from wealthy UBS clients mounted to CHF33.2 billion, from CHF16.8 billion.

Being one of the hardest-hit banks worldwide from the financial crisis, UBS has taken steps to increase capital and reduce risk. But it lags rivals like Deutsche Bank AG (DB) or Goldman Sachs Group Inc. (GS), whose investment banking businesses thrived in recent quarters.

UBS shares have fallen 12%, in line with a 12% fall in the Stoxx Europe 600 bank index. On Monday, UBS stock closed at CHF14.16, giving the bank a market capitalization of $46.02 billion.