|
|
|
UBS
in Q4 loss of $11.5 bln on subprime woes
Reuters
30
Jan 08
http://www.guardian.co.uk/feedarticle?id=7267165
UBS
AG on Wednesday posted a 12.5 billion Swiss franc ($11.45
billion) loss for the last three months of 2007, dragging the
Swiss bank deep into the red for the full year as subprime losses
took their toll.
The embattled bank had previously said
that it might report a loss for the full year 2007, depending on
its performance in the fourth quarter.
Now, in surprise
announcement, the bank said the fourth-quarter loss will generate
a full-year loss of 4.4 billion francs.
UBS is one of the
hardest-hit banks worldwide from the credit crisis that has
caused over $100 billion in losses, gashed balance sheets and
forced some of the proudest institutions like UBS, Citigroup and
Merrill Lynch into emergency capital-raising measures.
The
group is now struggling to restructure its investment bank and
repair its credibility after the staggering losses, which have
pushed its shares 40 percent lower over the past year.
The
group said it managed to reduced its balance sheet and risk
weighted assets during the quarter, which resulted in a loss, and
that it will report a BIS Tier 1 ratio of 8.8 percent as of 31
December 2007.
UBS said in a statement the results reflect
$12 billion in losses from the U.S. subprime market, plus $2
billion in losses from other U.S. residential mortgages and that
weak trading income dragged performance lower as well.
UBS
was scheduled to report results on Feb. 14.
UBS had
already taken charges of $14.5 billion on its exposures to U.S.
subprime mortgages and last month announced a 13 billion Swiss
franc capital injection from Singapore and an unidentified Middle
East investor.
The Swiss bank's huge losses, which have
prompted calls for it to spin off its investment banking business
and concentrate on its highly successful wealth management
activities, stem from a disastrous hedge fund venture into
subprime mortgages.
(Reporting by Thomas Atkins;
Editing by David Cowell)
|
|
