Hit by the recent rogue trading scandal, Swiss
banking giant UBS expects a “modest” group net profit and net new
money (NNM) inflows in its wealth business for the third quarter of
2011.
The group net profit includes approximately
CHF400m ($435m) of restructuring charges associated with the bank’s
cost-reduction programme, and a $2.3bn loss from unauthorised
trading at its London-based investment arm in September.
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Mixed expectations
UBS said it expects NNM inflows “broadly
similar” to the second quarter in its wealth management businesses,
and to make an approximate CHF700m profit from the sale of
treasury-related investments at Wealth Management & Swiss
Bank.
However, the bank expects its global asset
management arm to report “moderate” NNM outflows.
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By GlobalData
What’s round the corner?
Last week, Oswald Gruebel resigned from his
post as UBS Group CEO, a direct result of a $2.3bn loss made by
London-based trader Kweku Adoboli over a three-month period.
The bank named Sergio Ermotti, groomed by
Gruebel to become his successor, as interim Group CEO; but, the
bank is yet to decide who will occupy the industry’s hottest seat
on a permanent basis.
UBS added it will continue to invest in its
global wealth management franchise, as well as Asia-Pacific, the
Americas and emerging markets.
