Friday 15 December 2017

Second-quarter profits up at UBS

Elena Logutenkova

UBS, Switzerland's largest bank, reported an increase in second-quarter profit and said it is close to a settlement over US mortgage-backed bond sales.

UBS rose in Zurich trading after posting net income of about 690 million Swiss francs (€650m).

Profit climbed from 524 million francs a year ago and beat analyst estimates.

"The big plus is stronger capital and the inflows in wealth management have gone well," said Christopher Wheeler, a London-based analyst at Mediobanca SpA.

The bank reached an agreement in principle with the US Federal Housing Finance Agency to settle claims related to residential mortgage-backed securities offerings between 2004 and 2007, UBS said, without disclosing the cost of the settlement.

The company is booking about 865 million francs of pretax charges, provisions and writedowns in the quarter related to the settlement and a Swiss-UK tax agreement.

UBS exceeded analysts' profit estimates for a second quarter in a row after chief executive officer Sergio Ermotti announced 10,000 job cuts last year and a strategy to exit most debt-trading businesses at the investment bank to focus the firm on money management.

Irish Independent

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