Swiss bank UBS AG reported a net loss yesterday of 11.5 billion Swiss francs (US$10.97 billion) for the first quarter of this year and announced 5,500 job cuts.
This compares with a net profit of SF3 billion in the same period last year.
The losses translate to SF5.63 per share, compared with earnings per share of SF1.43 in the first quarter of last year.
The bank warned investors last month to expect net losses of SF12 billion for the first three months of this year after writing down approximately US$19 billion on US real estate and related credit positions over that period.
Switzerland’s largest bank said it would cut 2,600 jobs in its investment banking arm — blamed for the majority of failures that led to the record writedowns of US$37.4 billion since last summer.
A further 2,900 jobs will go in other parts of the business, bringing the total number of posts cut by the middle of next year to 5,500 overall.
UBS said it has reduced its exposure to subprime-related assets by 60 percent since the third quarter of last year.
“We can see tangible effects as a result of our initial responses to the losses,” CEO Marcel Rohner said in a statement.
“While our exposure is still subject to swings in market conditions, we see market demand for these securities returning in certain areas and at the current level of valuations,” he said.
The bank said it suffered a net outflow of SF12.8 billion in the quarter, compared with a net inflow of SF52.8 billion in the same period last year.
The figure is a closely watched gauge of a bank’s future revenue, not only reflecting general market conditions, but overall customer confidence in the institution as well.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS