• 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

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
'Suicide tourists' double in three years
The Dignitas clinic in Pfaeffikon near Zurich. Photo: Sebastian Derungs/AFP

'Suicide tourists' double in three years

A total of 172 "suicide tourists" travelled to Switzerland in 2012 – double the 2009 number – to die with medical assistance, a practice prohibited in many countries, a study said on Thursday. READ  

Swiss goalie retires from international football
Diego Benaglio played for Switzerland during the FIFA World Cup 2014 in Brazil. Photo: Juan Mabromata/AFP

Swiss goalie retires from international football

Switzerland goalkeeper Diego Benaglio announced his international retirement on Wednesday, saying that he wanted to concentrate on his club career with German side Wolfsburg. READ  

US tax crackdown hits Swiss private banks
Photo (detail): AFP

US tax crackdown hits Swiss private banks

Switzerland's exclusive private banks took a beating last year, in part due to a US crackdown on tax cheats, with more than one third of them posting losses, a study published on Wednesday showed. READ  

Novartis signs global deal for TB treatment
Photo: Sebastien Bozon/AFP

Novartis signs global deal for TB treatment

Swiss-based pharmaceuticals giant Novartis said on Wednesday that it had signed a licensing deal with an international organization that fights tuberculosis. READ  

Glencore Xstrata switches back into black
Photo: AFP

Glencore Xstrata switches back into black

Mining giant Glencore Xstrata reported a sharp improvement in first-half performance on Wednesday, marking a big switch back into profit. READ  

Woman accuses nude selfies politician of lying
Baden city hall (building with spire, left). Photo: Roland Zumbühl

Woman accuses nude selfies politician of lying

The case of Geri Müller, the federal MP from Aargau and town mayor of Baden who sent nude selfies to a woman from his office, has taken another turn after she accused him of lying. READ  

Lake Geneva drownings claim lives of two men
Lake Geneva's La Maladaire beach. Photo: Tourismesuisse.com

Lake Geneva drownings claim lives of two men

In the second fatal drowning in Lake Geneva in as many days a 20-year-old man died after swimming near a beach at La Tour-de-Peilz in the canton of Vaud, cantonal police said on Tuesday. READ  

Villagers reject hydro plant to protect vultures
A bearded vulture. Photo: Richard Bartz

Villagers reject hydro plant to protect vultures

A couple of bearded vultures won out over a planned hydroelectric plant in a referendum held in a small village in the Engadin Valley region of the canton of Graubünden this week. READ  

Credit Suisse involved in Portuguese bank troubles
Photo: AFP

Credit Suisse involved in Portuguese bank troubles

Swiss banking giant Credit Suisse on Tuesday confirmed that it had created investment vehicles for scandal-mired Banco Espirito Santo before it was bailed out by the Portuguese government. READ  

Politician in nude selfies scandal speaks out
Geri Müller: wants to stay in office. Photo: Swiss federal assembly

Politician in nude selfies scandal speaks out

A politician from the canton of Aargau embroiled in a scandal over sending nude selfies to a woman from his office apologized for his behaviour on Tuesday but maintained that he wanted to continue in office. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Two hundred passengers rescued after landslide derails Swiss train
Travel
Switzerland remains world champion for per capita train travel
Culture
Social media backlash forces Polanski to bow out of Locarno film festival
National
Two policemen identified among three Israelis killed in train crash
Features
Untouched Alps: The Local explores Switzerland's only national park
National
Swiss government secretary tweets nude ‘selfies’ taken at work
International
Swiss couples fined in Ibiza for making love in van without seatbelts
National
Schumacher medical record theft suspect hangs himself in Zurich cell
National
Thousands of motorists drive without permits in Switzerland: report
National
Switzerland celebrates the centennial of national park in Graubünden
National
Animal rights group protests over dead fish throwing at festival
National
Federer forced to tear down kids' play area at Graubünden holiday home
National
Zurich taxis charge world’s most expensive fares: new survey
National
Swiss bus driver charged with careless driving in fatal Norway crash
National
European Union rejects Swiss bid to rejig freedom of movement deal
Tech
Hackers exploit 'holes' in Swiss online banking systems: IT experts
Sport
Video of Bern football player's spectacular own goal goes global
Tech
Switzerland stays on top of innovation rankings for fourth year
National
Roger Federer and Lindsey Vonn play tennis at Jungfraujoch (VIDEOS)
Business & Money
Competition commission launches probe into Swiss car leasing 'fiddle'
Health
Down's syndrome cases in Switzerland more than double
National
American family files hefty lawsuit over deadly Swiss balloon crash
Features
Graubünden's panoramic Bernina Express celebrates rail history
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

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

2,119
jobs available