Record profits at UBS
Update 13:30 Zurich, Switzerland (GenevaLunch) – Swiss banking giant UBS has announced that pre-tax profits for the first quarter of 2010 will reach CHF2.5 billion. The statement was made ahead of its annual general meeting, which takes place takes place 14 April. Swiss media reports Monday indicate that the meeting Wednesday is likely to be a heated one.
This is its highest pre-tax profit since 2007.
Net client withdrawals from its wealth management units were down more than CHF15 billion from Q4 in 2009.
Institutional investors’ rep Ethos opposes remuneration and discharge agenda items
Two agenda items have prompted a group of investors led by Ethos to put up a fight at the annual general meeting Wednesday: the discharge of the board and executive committee members for 2007, 2008 and 2009 and the bank’s remuneration policy. Ethos is a UBS shareholder that represents a number of large Swiss institutional investors, notably several pension funds.
UBS announced its decision, in December, to clear the board and committee members from 2007-2009 of criminal wrongdoing, after internal and Finma (Swiss banking supervisory body) investigations into the bank’s losses and problems with the US tax office, the IRS.
Japan’s trade surplus reached 521 billion yen in September, about 472 percent more than a year ago, but it still disappointed analysts. Exports were down 30.7 percent compared to a year earlier, but in August that figure reached 36 percent, according to figures released by the Japanese Finance Ministry Thursday 22 October.
The Japanese yen has increased in value against all major currencies this year, making Japanese goods more expensive for foreigners.
Imports were down almost 37 percent in the month, with crude oil imports down 2.4 percent over the year, reflecting depressed demand at home. Bloomberg, Romandie News
In case of emergency, press button!
Update 23:35 Bern, Switzerland (GenevaLunch) – Switzerland is in the process of setting up a tax hotline, primarily for US citizens, to deal with an expected influx of questions once the US and Switzerland both sign the new double taxation agreement, GenevaLunch has been told by a government official. The date for the hotline to open is not yet set, nor are further details available yet.
The Swiss cabinet 11 September gave a green light to two ministries, foreign affairs and finance, to sign the agreement. They are currently working on details, the official says, and while no one can yet say when exactly the agreement will be signed, he would not exclude that this could be in the very near future. [Ed. note: a Swiss Bankers Association senior official said at a meeting in Geneva Tuesday evening that Switzerland is expected to sign the agreement tomoorw, 23 September].
SBA CEO Urs P Roth
Zurich, Switzerland (GenevaLunch) – EU citizens with bank accounts in Switzerland will pay a withholding tax on income from all investments, not just on savings income as at present, if a proposal from the Swiss Bankers Association (SBA) goes ahead. The group, at its annual meeting in Zurich 17 September suggested that the money collected would be transferred to the respective countries’ tax authorities without disclosing the name of the bank customer. The SBA proposal would extend withholding tax on EU citizens to include dividend income generated by stocks and mutual funds, as well as capital gains.
Switzerland has levied a withholding tax on its own and EU citizens since 2005, but it covers only income from certain types of investment, principally from bonds.
Two massive bombs went off in the central part of Baghdad, killing more than 75 people and leaving more than 300 wounded. A truck with a bomb hidden in it went off outside of the Iraqi foreign ministry, just outside of the protected Green Zone. It left a crater 3 metres deep and 10 metres wide. Another bomb went off near the finance ministry. Several smaller explosions, believed to be mortars, were also reported. It was the deadliest day since the US military forces handed back security to the Iraqi forces. Bomb attacks are still common in Baghdad but have tended to target poor Shia neighbourhoods. BBC, CNN
Bern, Switzerland (GenevaLunch) – Switzerland’s finance minister, who had emergency quintuple coronary bypass surgery 20 September, will return to work 3 November.
