Zurich, Switzerland (GenevaLunch) – Fourth quarter profits for 2009 were CHF1.205 million, says Swiss bank UBS, offering investors a brighter face after months of gloomy news about its financial results and legal problems. The figure was three times that projected by analysts contacted by Swiss news agency AWP. It leaves the bank with a loss for the year 2009 of CHF2.74 million, from a loss of CHF21.30m in 2008. The company published the figures Tuesday morning 9 February.
All business divisions reported a pre-tax profit. The improved performance, after four straight quarters of losses, was due to cost-cutting and efficiency, with fixed costs reduced to CHF20.2 billion, “broadly in line with the CHF20b target set for 2010″ the financial report indicates.
The bank cut staff by 16 percent, to just over 65,000, as part of its cost reduction programme.
Net outflows of money continue to be a serious concern: CHF33.2b for Wealth Management & Swiss Bank, CHF12.0b for Wealth Management Americas, and CHF11.0b for Global Asset Management. Group CEO Oswald Gruebel says in a statement issued with the results: “We entered 2009 at the height of the crisis. By the end of 2009 UBS has returned to profitability, delivering on its priorities. We have taken decisive action to transform UBS, and it is now a focused, efficient and resilient firm. We expect that our return to profitability will increase clients’ confidence in UBS and restore our reputation.”
The bank’s tier 1 capital ratio rose to 15.3 percent, a sign of stronger reserves.
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News story, GenevaLunch, 9 February 2010.
Filed under: Business
Tags: 2009 financial results, losses, Oswald, Oswald Gruebel, profits, Q4 results, UBS