UBS AG, Switzerland’s biggest bank, is considering a spinoff of its investment-banking business as regulators’ demands for more capital thwart efforts to boost returns, according to Mediobanca SpA analysts.

UBS said in October its target to reach a 15 percent return on equity in 2015 will be delayed by at least one year after the Swiss regulator requested the Zurich-based bank hold more capital for litigation risks. Days later, Switzerland’s finance minister said current leverage ratios are too low and banks may have to consider whether to keep securities businesses.

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