Credit scenario update drives UBS loan-loss reserves higher

- By Lorenzo Migliorato
- 21 Jul 2020

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

UBS downgraded its economic outlook in Q2 as the coronavirus pandemic worsened. The change contributed to a $272 million provision charge to cover souring loans.

Expected credit loss (ECL) provisions taken for IFRS 9 stage one and two loans – those that are yet to default – hit $202 million for the three months to end-June, up from $89 million in Q1. Of this amount, $127 million was taken to reflect the bleaker macroeconomic assumptions included in its forward-looking credit models. Another $75

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact info@risk.net to find out more.

You are currently unable to copy this content. Please contact info@risk.net to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@risk.net

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@risk.net