UBS reports results for the second quarter 2009. The highlights include:
Second quarter net loss attributable to UBS shareholders of CHF 1,402 million;
Results include an own credit charge of CHF 1,213 million, restructuring charges of CHF; 582 million and a goodwill impairment charge of CHF 492 million related to the announced sale of UBS Pactual;
Excluding the own credit, goodwill impairment and restructuring charges, operational profit before tax would have been CHF 971 million.
Greater financial stability
Significant reduction in legacy risk positions and associated losses, including lower credit loss expenses;
The improved perception of UBS’s creditworthiness during second quarter 2009 was a positive development, but the own credit charge associated with this improvement was a major factor in the results.
Net new money and invested assets
Net new money outflows were CHF 16.5 billion for Wealth Management & Swiss Bank; Wealth Management Americas reported net new money outflows of CHF 5.8 billion; net new money outflows totaled CHF 17.1 billion for Global Asset Management;
Invested assets were CHF 2,250 billion at quarter-end, up from CHF 2,182 billion on 31 March 2009.
Capital and balance sheet
Strong capital position: BIS tier 1 ratio of 13.2% and BIS total capital ratio of 17.7% at quarter-end, including the effect of the capital increase completed on 30 June 2009;
The announced sale of UBS Pactual is expected to close in third quarter 2009 and increase; UBS’s BIS tier 1 ratio by approximately 50 basis points to a 30 June 2009 pro forma ratio of 13.7%;
Further reductions of risk exposures and balance sheet: total assets down CHF 261 billion to CHF 1,600 billion and total risk-weighted assets under Basel II down 11% to CHF 248 billion at quarter-end;
FINMA leverage ratio of 3.5% at 30 June 2009.
Cost reduction
On track to achieve the targeted fixed cost base reduction of CHF 3.5 4.0 billion by 2010; cost savings starting to flow through with full effect expected towards the end of the year;
Personnel down by 4,400 to 71,806 at 30 June 2009. As announced on 15 April 2009, staff will be reduced to approximately 67,500 by 2010.
L.D.