Regulatory News:
UBS (NYSE:UBS)(SWX:UBSN) announces that its results for the second
quarter ended June 30, 2008, which will be released as planned on August
12, are likely to be at or slightly below break-even.
The results reflect positive contributions from Global Wealth Management
& Business Banking and from Global Asset Management, offset by a loss in
the Investment Bank.
Further market deterioration led to writedowns and losses on previously
disclosed Investment Bank risk positions, in particular credit valuation
adjustments on monoline insurance exposures. Write-downs were mitigated
by continued exposure reductions and by hedge benefits. In connection
with the losses to date, the second quarter results include a tax credit
of approximately CHF 3 billion.
Group net new money was negative for the period. This was most
pronounced in April but improved in May and June, in particular for
Global Wealth Management & Business Banking.
At the end of the quarter, UBS expects its Tier 1 capital ratio to be
approximately 11.5 per cent, and has no need to raise new equity.
UBS
UBS is one of the world’s leading financial
firms, serving a discerning international client base. Its business,
global in scale, is focused on growth. As an integrated firm, UBS
creates added value for clients by drawing on the combined resources and
expertise of all its businesses.
UBS is the leading global wealth manager, a leading global investment
banking and securities firm, and one of the largest global asset
managers. In Switzerland, UBS is the market leader in retail and
commercial banking.
UBS is present in all major financial centers worldwide. It has offices
in 50 countries, with about 38% of its employees working in the
Americas, 33% in Switzerland, 16% in the rest of Europe and 13% in Asia
Pacific. UBS employs more than 80,000 people around the world. Its
shares are listed on the Swiss Stock Exchange (SWX), the New York Stock
Exchange (NYSE) and the Tokyo Stock Exchange (TSE).
FORWARD-LOOKING STATEMENTS
This release contains statements that constitute “forward-looking
statements”, including but not limited to
statements relating to UBS’s business and
future business development and economic performance and UBS’s
intentions with respect to equity-raising. While these forward-looking
statements represent UBS’s judgments and
future expectations concerning the development of its business, a number
of risks, uncertainties and other important factors could cause actual
developments and results to differ materially from UBS’s
expectations. These factors include, but are not limited to (1) the
extent and nature of future developments in the United States subprime
market and in other market segments that have been affected by the
current market crisis; (2) other market and macro-economic developments,
including movements in local and international securities markets,
credit spreads, currency exchange rates and interest rates, whether or
not arising directly or indirectly from the current market crisis; (3)
the impact of these developments on other markets and asset classes; (4)
changes in internal risk control and in the regulatory capital treatment
of UBS’s positions, in particular those
affected by the current market crisis; (5) limitations in the
effectiveness of UBS’s internal risk
management processes, of its risk measurement, control and modeling
systems, and of financial models generally; (6) developments relating to
UBS’s access to capital and funding,
including any changes in UBS’s credit
ratings; (7) changes in the financial position or creditworthiness of UBS’s
customers, obligors and counterparties, and developments in the markets
in which they operate; (8) management changes and changes to the
structure of UBS’s Business Groups; (9) the
occurrence of operational failures, such as fraud, unauthorized trading
and systems failures; (10) legislative, governmental and regulatory
developments; (11) competitive pressures; (12) technological
developments; and (13) the impact of all such future developments on
positions held by UBS, on its short-term and longer-term earnings, on
the cost and availability of funding and on UBS’s
BIS capital ratios.
In addition, these results could depend on other factors that we have
previously indicated could adversely affect our business and financial
performance which are contained in other parts of this document and in
our past and future filings and reports, including those filed with the
SEC. More detailed information about those factors is set forth
elsewhere in this document and in documents furnished by UBS and filings
made by UBS with the SEC, including UBS’s
Annual Report on Form 20-F for the year ended 31 December 2007. UBS is
not under any obligation to (and expressly disclaims any such obligation
to) update or alter its forward-looking statements, whether as a result
of new information, future events, or otherwise.
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