UBS posts $1.32 bn losses in Q2

UBS posts $1.32 bn losses in Q2

Zurich: Swiss banking giant UBS on Tuesday said that it lost 1.4 billion Swiss francs ($1.32 billion) during the second quarter, as it issued a cautious outlook for the coming months.

Market conditions improved during the period but the overall economic environment in most areas where the bank was operating remained recessionary, said UBS.

Sustainable recovery is not yet visible, it said.

The bank said its second quarter earnings were hurt by a credit charge of 1.2 billion francs, restructuring charges of 582 million francs and an impact of 492 million francs in relation to the sale of UBS Pactual.

During the same period last year, the bank lost 358 million francs.

UBS also failed to stem an outflow of assets during the second quarter.

Its wealth management and Swiss bank division posted net new money outflows of 16.5 billion francs.

The bank’s wealth management Americas division posted outflows of 5.8 billion francs and its global asset management division recorded an outflow of 17.1 billion francs.

UBS’ latest results contrast starkly with those of fellow Swiss banking giant Credit Suisse, which posted a 29% leap in second quarter profits of 1.571 billion francs.