UBS to report its biggest profit in three years
12 Apr 2010
UBS, Switzerland's biggest but most troubled bank, is expected to report its highest quarterly profits in almost three years after amassing more than $50 billion in write-downs and losses since the beginning of the financial crisis.
Zurich- and Basel-headquartered UBS, which returned to profit in the previous quarter, said in a statement that it expects to report a profit before tax of at least CHF 2.5 billion ($2.3 billion) for first quarter 2010.
Against this, net new money outflows in all businesses were substantially lower than in the fourth quarter of 2009, UBS, the world's second-largest wealth management bank, said.
The bank revealed that new client withdrawals in all businesses were CHF18 billion ($17 billion) during the first quarter, substantially lower than the CHF 56 billion ($52 billion) during final quarter of last year.
UBS statement on quarterly profits comes ahead of its Annual General Meeting (AGM) on 14 April in what is expected to be a turbulent shareholder meeting for chief executive Oswald Gruebel, as some activist investors prepare to reject a UBS bonus system and plans to clear management of responsibilities for the crisis, analysts said.
Despite reporting a loss in 2009, UBS handed out $51 million in bonus to its management, although Gruebel was the only one who refused it.
