UBS expects to break-even at best in second quarter

  • Story by: Sharon Flaherty
  • Magazine: FTAdviser
  • Published Friday , July 04, 2008

UBS is likely to break-even at best in the second quarter of 2008, the Swiss bank announced today.

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The bank is due to report its results for the second quarter ending 30 June, 2008 on 12 August.

“Results for the second quarter are likely to be at or slightly below break-even,” it said in a statement.

It said the results will reflect positive contributions from Global Wealth Management & Business Banking and Global Asset Management, offset by a loss in the Investment Bank.

UBS says further market deterioration led to writedowns and losses on previously disclosed Investment Bank risk positions, in particular credit valuation adjustments on monoline insurance exposures.

However ut added write-downs were mitigated by continued exposure reductions and by hedge benefits.

In connection with the losses to date, the second quarter results include a tax credit of approximately CHF 3bn (£1.47bn).

At the end of the quarter, UBS expects its Tier 1 capital ratio to be approximately 11.5 per cent, and has no need to raise new equity.



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