UBS Reports SF830 Million Loss on Debt Writedowns

Discussion in 'Stocks' started by ASusilovic, Oct 30, 2007.

  1. Oct. 30 (Bloomberg) -- UBS AG, Europe's largest bank by assets, reported its first quarterly loss in almost five years after declines in the U.S. subprime mortgage market forced it to write down the value of fixed-income securities.

    The third-quarter net loss was 830 million francs ($712 million), or 49 centimes a share, compared with net income of 2.2 billion francs, or 1.07 francs, a year earlier, Zurich-based UBS said in a statement today. The loss was wider than the 683 million-franc estimate of nine analysts surveyed by Bloomberg.

    The slumping U.S. housing market, which cost the world's biggest securities firms and banks more than $30 billion in bad loans and trading losses in the third quarter, may lead to further writedowns, UBS reiterated today. Chief Executive Officer Marcel Rohner, who replaced Peter Wuffli four months ago after the Dillon Read Capital Management LLP hedge fund collapsed, aims to restore profit by slashing 1,500 jobs and reducing risk-taking at the investment bank.

    ``They didn't have very good control over what was happening at their investment bank,'' said Mark Glazener, a fund manager at Rotterdam-based Robeco, which holds about $65 million of UBS shares. ``It's still not very clear what is going on.''

    UBS shares are the sixth-worst performers in the 63-member Bloomberg Europe Banks and Financial Services Index in the 12 months through yesterday, down 21 percent. Frankfurt-based Deutsche Bank AG lost 11 percent and Zurich-based rival Credit Suisse Group gained 1 percent.

    Outsch ! Reducing risk taking means we are lossing one intraday liquidity provider ! :p :p
  2. UBS fixed income revenue was negative SFR4.23B

    UBS investment banking loss SFR3.68B

    That hurts !:eek:
  3. At UBS, money talks. Unfortunately, it says "goodbye".