• Switzerland edition
 
UBS profits slump in second quarter
Monte Carlo Generator

UBS profits slump in second quarter

Published: 31 Jul 2012 16:54 GMT+02:00
Updated: 31 Jul 2012 16:54 GMT+02:00

Swiss banking giant UBS said Tuesday that its second quarter net profit slumped more than 58 percent and it intended to sue over the botched listing of the world's biggest social network site Facebook.

UBS said its net profit was 425 million Swiss francs (€354 million, $435 million), well short of analyst forecasts polled by Swiss agency AWP at

around 1.1 billion Swiss francs.

UBS blamed the downturn on lower trading and services revenues while operating costs rose.

Chief executive Sergio Ermotti said the bank was determined to "consolidate its position as the best capitalised bank," topping the 9.0 percent Core Tier 1 capital ratio requirement by the end of this year.

Banking regulators have tightened capital ratio requirements – a key measure of a bank's strength – in an effort to prevent any repeat of the risky practices which contributed to the 2008 global financial crisis.

UBS rival Credit Suisse plans to raise 15.3 billion Swiss francs in fresh capital so as to meet the tougher rules.

UBS was cautious on the outlook, noting the eurozone debt crisis, US debt levels and geopolitical tensions which will "continue to influence client
confidence ... and third quarter activity."

The bank meanwhile reaffirmed that it had suffered a loss of 349 million Swiss francs in the New York listing of Facebook and would seek compensation
in full.

It blamed the losses on "serious malfunctions" during the Facebook listing on the high-tech Nasdaq market, with orders placed for clients repeated
several times meaning that UBS ended up with more shares than it had wanted.

Nasdaq was to blame and it should have suspended trade in Facebook, UBS charged, adding that it would sue to get back all the money it said was lost
as a result of the problems.

Facebook listed in a much-hyped May 18 debut that was plagued by technical glitches and complaints that key forecasts were kept from the public in what
was the largest initial public offering for a tech firm.

Its shares have fallen steadily from the listing price of $38 to around $23.

Nasdaq earlier this month raised to $62 million the amount of money it will set aside to cover trading losses due to computer glitches such as those which
disrupted the Facebook launch.

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Mega diamond to be auctioned in Geneva
A Sotheby's employee poses for pictures with the "Graff Vivid Yellow," at 100.09 carats one of the rarest yellow diamonds of its size. AFP Photo/Andrew Cowie

Mega diamond to be auctioned in Geneva

One of the world's largest yellow diamonds will go under the hammer in Geneva next month, with the Sotheby's auction house hoping to rake in up to $25 million for the gem. READ () »

Activist jailed for six years in Vasella case
Former Novartis chairman Daniel Vasella. Photo AFP/File

Activist jailed for six years in Vasella case

A British animal rights activist was jailed for six years on Thursday for her part in a Europe-wide campaign of intimidation targeting Huntington Life Sciences, an animal testing company linked to Swiss pharma giant Novartis. READ () »

Zoo faces cruelty charges over cub deaths
Kurt Nünlist was appalled by the deaths of two cubs at the Bern zoo (photo:zvg)

Zoo faces cruelty charges over cub deaths

A Swiss animal lover has filed a legal complaint against Bern zoo, accusing it of cruelty over the deaths of two bear cubs. Dählhölzli zoo could be fined under Switzerland’s tough animal protection laws. READ () »

Germans smuggle cash out of Switzerland
Customs officials found €573 million in illegal money in 2013. Photo: Emilian Robert Vicol

Germans smuggle cash out of Switzerland

The number of Germans smuggling money out of Switzerland rose dramatically last year. Customs officers on the German-Swiss border said on Thursday they made a find in almost every third car they checked. READ () »

Experts challenge e-cigarettes study
Photo: Denis Charlet / AFP

Experts challenge e-cigarettes study

Two Swiss medical organisations have rejected calls to overturn the ban on sales of electronic cigarettes in Switzerland. READ () »

Bern approves solution for Erasmus students
Students intending to go on an Erasmus exchange in 2014-15 will now be able to. Photo: Jirka Matousek

Bern approves solution for Erasmus students

Following the suspension of Switzerland's participation in the Erasmus student exchange programme, on Wednesday the federal government approved plans for a 23 million franc ($26 million) interim solution. READ () »

Kerry bound for Geneva talks on Ukraine crisis
US Secretary of State John Kerry in Geneva last year. Photo: Pool/AFP

Kerry bound for Geneva talks on Ukraine crisis

US Secretary of State John Kerry left on Wednesday for Geneva for high-stakes talks on Ukraine, armed with the threat of more sanctions against Moscow if diplomacy fails, as tensions on the ground escalated sharply. READ () »

Credit Suisse investment bank woes hurt profits
Credit Suisse offices in Zurich. Photo: Credit Suisse

Credit Suisse investment bank woes hurt profits

Swiss banking giant Credit Suisse said on Wednesday that its first quarter net profit took a heavy hit as its investment bank reeled from slumping trading in bonds. READ () »

Ski champion announces same-sex marriage
Sylviane Berthod (right in each of the photos) and her partner. Photos: Facebook

Ski champion announces same-sex marriage

Former Swiss alpine ski champion Sylviane Berthod has announced her engagement to marry another woman in a public way — on her Facebook page. READ () »

UK blocks Swiss deal with EU on Croatia
EU headquarters in Brussels. Photo: Dominique Faget/AFP

UK blocks Swiss deal with EU on Croatia

The UK has scuppered, at least temporarily, an agreement in principle between Bern and Brussels over the free movement of people between Switzerland and Croatia, the Swiss broadcaster RTS says. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Features
Former industrial zone transforms into Zurich’s trendiest spot
Tech
Swiss Solar Impulse team shows off new fuel-free aircraft
International
Suspect in Liechtenstein bank CEO murder case 'likely dead'
Sponsored Article
Caveman comedy comes to Zurich in English
Society
Innovative building provides refuge for hypersensitive tenants
Tech
VIDEO: Teenage boy sends Swiss army knife into stratosphere
International
Switzerland ranks second in world for social progress: report
National
Pharrell Williams set to perform in first Montreux jazzfest concert
Sport
American wingsuit flyer dies after Bernese Oberland accident
Business & Money
H&M plans hefty Swiss minimum wage for employees by 2015
International
Caterpillar accused by US senator of dodging taxes through 'Swiss plan'
International
Geneva man in Facebook page fight with Italian carmaker Ferrari
Advertisement:
International
Schumacher’s wife pays for 'medical suite' at Swiss family mansion
International
Aborted Swiss airlines take-off injures four at London airport
International
Swiss refuse asylum request from topless protest group founder
Business & Money
British expat former banker to head Swiss finance regulator FINMA
National
Swiss honey contains harmful plastic: TV consumer affairs report
Business & Money
Luxury watchmaker Patek Philippe threatens Geneva exit over taxes
Business & Money
World's largest watch fair opens in Basel amid uncertain times
International
'Fergie' credits hikes around Verbier mountains for recent weight loss
Etoiles de Montagne
Sponsored Article
How to summer holiday up a Swiss mountain
Swissbenefits
Sponsored Article
How to avoid Switzerland’s tax haven trap
International
Switzerland's residents are the happiest in the OECD: report
International
Swiss voters support bid to establish lofty minimum wage: poll
National
Switzerland's largest cities set to back regulated 'cannabis clubs'
Business & Money
Franc surges against other currencies on rising Ukraine concerns
Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

2,092
jobs available