Saturday, 16 February 2008
The Swiss bank this morning a loss of historic 4384 billion Swiss francs. UBS warns that the current year will also be difficult.
Some 4.4 billion Swiss francs in losses, or 2.7 billion euros! That is the extent of the losses confirmed this morning by UBS, the first Swiss bank, which had last year made a profit of 12.26 billion Swiss francs.
The bank had already warned the markets of this poor performance, entirely due to the crisis in the mortgage market. Net banking income (GNP) fell from 34% to 31.03 billion francs, and the net inflow of new money fell 7% to 140.6 billion over the year and 39% over the fourth quarter .
"The year 2007 was one of the most difficult in our history," said Marcel Rohner, CEO of the UBS group, in describing this result "unacceptable". "While most of our business continued to be highly profitable, the sharp deterioration in the real estate market as well as our American high exposure to the securities and derivatives associated with mortgages at risk we have severely penalized," he detailed.
In total, the impairment of assets represent more than 18 billion United States dollars, or one of the largest losses of banks in connection with the crisis "subprimes." Only American banks Merrill Lynch and Citigroup have suffered greater losses, with 19.4 and 21.1 billion dollars in losses.
The height is that the bank believes that the current period should again be difficult, without specifying further along. What worries visibly investors: the title lost 1.81% to 40.12 Swiss francs this morning.
A difficult 2008 fro USB bank
Some 4.4 billion Swiss francs in losses, or 2.7 billion euros! That is the extent of the losses confirmed this morning by UBS, the first Swiss bank, which had last year made a profit of 12.26 billion Swiss francs.
The bank had already warned the markets of this poor performance, entirely due to the crisis in the mortgage market. Net banking income (GNP) fell from 34% to 31.03 billion francs, and the net inflow of new money fell 7% to 140.6 billion over the year and 39% over the fourth quarter .
"The year 2007 was one of the most difficult in our history," said Marcel Rohner, CEO of the UBS group, in describing this result "unacceptable". "While most of our business continued to be highly profitable, the sharp deterioration in the real estate market as well as our American high exposure to the securities and derivatives associated with mortgages at risk we have severely penalized," he detailed.
In total, the impairment of assets represent more than 18 billion United States dollars, or one of the largest losses of banks in connection with the crisis "subprimes." Only American banks Merrill Lynch and Citigroup have suffered greater losses, with 19.4 and 21.1 billion dollars in losses.
The height is that the bank believes that the current period should again be difficult, without specifying further along. What worries visibly investors: the title lost 1.81% to 40.12 Swiss francs this morning.
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