Swiss banking giant UBS yesterday reported a broad recovery across its businesses, with net profits reaching 2.2 billion swiss francs (US$2.02 billion) in the first quarter.
The earnings beat analysts’ forecasts of SF2 billion, according to a poll by economics newswire AWP, and marked an 83 percent jump from the previous quarter.
The group recorded pre-tax profits across all business groups, including investment banking, which had run up big losses during the financial crisis but which posted SF1.19 billion in pre-tax profits for the first three months of the year.
The bank said its investment banking business had benefited from a “strong performance” in its fixed income, currencies and commodities business.
It added in its outlook statement that in the current quarter, the securities trading market was expected to be “generally in line with the first quarter, although concerns relating to European sovereign debt provide a basis for some market uncertainty.”
Chief financial officer John Cryan said that the group had “hardly any exposure whatsoever to Greece.”
“It’s immaterial,” he said.
Cryan said the group discloses its major exposure to foreign jurisdiction in its annual report, and that “none of Greece, Spain or Portugal appears” in the report.
“We’re sleeping very well at night,” he added.
Meanwhile, the bank was still unable to stem an outflow during the first quarter, with the net new money outflow reaching SF18 billion for the period as clients took their assets elsewhere.
However, it was a sharp improvement from a quarter ago, when net outflows reached SF56.2 billion.
“Net new money outflows are expected to be at relatively moderate levels in the near term, although UBS continues to believe that the steps taken to deal with the root causes of the net outflows will be effective,” the bank said.
Cryan said that while the management had taken steps to try to stem the outflows, “we still think that they will take some time to take fruit.”
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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