Swiss bank UBS AG, with operations in Stamford, reported a third-quarter net loss of $542 million (564 million Swiss francs) today, blaming accounting charges of 2.15 billion francs for keeping it in the red.
The Zurich-based bank had posted a net profit of 283 million francs during the same period last year.
Discounting the one-time charges, UBS would have made a third-quarter pretax profit of 1.56 billion francs, it said. Operating income rose 4 percent to 5.77 billion francs compared with the same period last year.
Analysts had predicted a third consecutive quarterly loss this year but differed widely in how to assess the expected writedowns, most of which resulted from tighter credit conditions.
UBS also took a hit from currency exchange in the sale of its Brazilian unit UBS Pactual, and from the conversion of mandatory convertible notes issued to the Swiss government as part of a bailout last year when the bank suffered a record 21-billion-franc annual loss.
The bank has reduced its risky investments and shed thousands of jobs in an attempt to return to profit over the past year. Staff numbers fell by almost 2,800 during the quarter and now stand at just over 69,000.
Chief Executive Oswald Gruebel tried to strike an upbeat note, stating that “business is steadily returning to normal.”
“Management actions are delivering visible results, and we are continuing to emphasize risk reduction and capital strength,” said Gruebel, who was brought in to turn the bank around in March.
But UBS Chief Financial Officer John Cryan acknowledged that “reputational issues still weigh on us a bit, and that particularly weighs on the morale of our client advisers.” (AP)
