UBS reports third quarter losses

by Richard Kilner

Story link: UBS reports third quarter losses

Swiss investment bank UBS has reported its third quarter results, which include a loss of CHF 564m.

The loss is less than that recorded in the second quarter (CHF 1.4bn) or the first (CHF 2bn).

The loss was due to substantial accounting charges which totalled CHF 2,150m, meaning that without such charges the bank would have turned in a profit of some CHF 1,557m.

The firm’s capital position was also enhanced during the last quarter, with BIS tier 1 capital ratio standing at 15%, and UBS has also reduced its risk exposure.

The bank’s cost reduction plan continues, with headcount reduced by 2,783 to 69,023, with a 2010 target of 65,000.

Group CEO Oswald J. Grübel has said that the last six months have been spent addressing the most critical problems the bank faced.

More recently improvements have been visible in the firm’s performance, and the emphasis on risk reduction and capital strength continues as previous measures begin to bear fruit.