UBS continues losing streak into Q1

Grübel said the result was due to losses on illiquid risk positions, credit loss expenses and writedowns on the assets transferred to the Swiss National Bank's Stabfund - a special-purpose vehicle created last October to absorb up to $39.1 billion of the firm's toxic US and European residential and commercial-backed securities, as well as other asset-backed securities on its balance sheet.

The bank's poor results for the first quarter follow a Sfr8.1 billion loss incurred in the final quarter of 2008, and a net loss of SFr20.9 billion for the full year.

UBS plans to save up to Sfr4 billion by the end of 2010 by reducing costs, most of which will come from cutting 8,300 of its 76,200 employees by the end of 2010.

On April 13, in contrast to the Swiss firm's disappointing start to 2009, US bank Goldman Sachs reported a first-quarter net profit of $1.81 billion, while on April 9 Wells Fargo announced an expected Q1 gain of approximately $3 billion. In addition, Bank of America, Citi, Credit Suisse, JP Morgan and Deutsche Bank have all predicted profits for Q1, while analysts expect Barclays, BNP Paribas, HSBC and Morgan Stanley could also finish March in the black.

See also: Q4 loss of Sfr8.1 billion for UBS
UBS admits Sfr20.9 billion loss for 2008
SNB issues US dollar debt to fund UBS's bad bank
'Technical' factors drive banks back to profit

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Smarter trading in a fragmented world

FX Week recently hosted a webinar in partnership with Refinitiv to ask foreign exchange industry leaders to discuss geopolitical challenges, market changes and developments, and evolving technologies, and how they have shaped forex markets in Asia

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here