UBS profits tumble
(4 February 2016 – Europe) Swiss based bank, UBS has posted less-than-expected profits for the last quarter of 2015.
The Swiss bank's net profits increased by 10.6 percent to CHF949 million (A$1.3 billion) in the three-month period, while annual profits increased by nearly 80 percent to CHF6.2 billion.
Pre-tax operating profits in the wealth management division dropped by 47 percent to CHF344 million, with total profits almost disappearing in its US based unit.
“The fourth quarter was characterised by very low levels of client activity and pronounced risk aversion,” UBS noted in its earnings statements.
The bank’s investment banking arm’s pre-tax operating profits plunged by 63 percent to CHF80m, as revenues fell across the whole division.
UBS did record increased profits in some of its smaller divisions – such as personal and corporate banking, and asset management.
Although not meeting market and internal forecasts, UBS chief executive Sergio Ermotti said that the bank was heading in the right direction. ”Despite a very challenging environment, we had an excellent year, both in terms of shareholder returns and strengthened client relationships,” he said.
“Going forward, we will continue with the disciplined execution of our strategy while investing for profitable and sustainable growth.”
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