SWITZERLAND: Swiss bank UBS reports faster than expected progress in investment bank overhaul despite large quarterly loss

Record ID: 860763

  • Title: SWITZERLAND: Swiss bank UBS reports faster than expected progress in investment bank overhaul despite large quarterly loss
  • Date: 5th February 2013
  • Summary: ZURICH, SWITZERLAND (FEBRUARY 5, 2013) (REUTERS) UBS CHIEF FINANCIAL OFFICER TOM NARATIL TALKING TO JOURNALIST (SOUNDBITE) (English) UBS CHIEF FINANCIAL OFFICER TOM NARATIL SAYING: "Sure, when we look at our fourth quarter certainly the primary component of the loss was the litigation previsions that we took in the fourth quarter primarily as a result of the Libor matter. In addition we also had some restructuring charges in the quarter, which were anticipated in part of the plan that we had to accelerate the strategy of the group in particular by focusing on certain business lines in the investment bank." NARATIL TALKING TO JOURNALIST (SOUNDBITE) (English) UBS CHIEF FINANCIAL OFFICER TOM NARATIL SAYING: "So, one of the advantages of making better progress on the non-core legacy asset reduction is the ability for us to take out some long-term debt and reduce our net interest expenses" EXTERIOR OF UBS CONFERENCE BUILDING IN ZURICH
  • Embargoed: 20th February 2013 12:00
  • Keywords:
  • Location: Switzerland
  • City:
  • Country: Switzerland
  • Topics: Business,Economy
  • Reuters ID: LVA56XHU89WMRCF7DL4JBYNF15XN
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  • Story Text: Swiss bank UBS reported on Tuesday (February 5) faster-than-expected progress in overhauling its investment bank but its flagship wealth management unit performed disappointingly, weighed down in Europe where Switzerland is under fire for helping tax cheats.
    UBS announced a 1.89 billion Swiss franc ($2.08 billion) net loss for the fourth quarter following a big fine for rigging benchmark interest rates, although this was less than the 2.078 billion analysts had expected on average.
    "Sure, when we look at our fourth quarter certainly the primary component of the loss was the litigation previsions that we took in the fourth quarter primarily as a result of the Libor matter. In addition we also had some restructuring charges in the quarter, which were anticipated in part of the plan that we had to accelerate the strategy of the group in particular by focusing on certain business lines in the investment bank", UBS Chief Financial Officer, Tom Naratil, told Reuters TV.
    UBS, Switzerland's biggest bank, will buy back 5 billion francs in senior debt in coming weeks, after the scaling back at its investment bank sharply reduced liquidity and funding needs, although it said that could result in "significant" first-quarter own credit charges.
    "So, one of the advantages of making better progress on the non-core legacy asset reduction is the ability for us to take out some long-term debt and reduce our net interest expenses", Naratil told Reuters TV.
    UBS said it had cut risky assets to 258 billion francs in the quarter from 301 billion the previous quarter, already in sight of the target of 200 billion francs it set for 2017.
  • Copyright Holder: REUTERS
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