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(Bloomberg) -- UBS Group AG, Switzerland’s biggest bank, will need to manage costs more tightly after the Swiss franc jumped against most currencies, Chairman Axel Weber said.
“We are going to have to control costs even more efficiently,” Weber said at a conference in Liechtenstein on Thursday, referring to the Swiss central bank’s decision to abolish its franc cap of 1.20 versus the euro.
UBS said on Jan. 23 its trading businesses didn’t suffer an overall loss in the market turmoil that erupted after the Swiss National Bank’s surprise decision prompted the franc to surge as much as 41 percent against the euro. Citigroup Inc., Deutsche Bank AG and Barclays Plc suffered $400 million of cumulative losses, people familiar said earlier this month.
Kian Abouhossein and Amit Ranjan, analysts at JPMorgan Chase & Co., lowered estimates for UBS’s pretax profit in 2015 and 2016 by 17 percent on average because of the franc’s rise. A stronger franc pushes up Swiss lenders’ costs, while hurting non-franc denominated revenues.
Credit Suisse Group AG, Switzerland’s second-biggest bank, said Jan. 21 in a statement on its website it hadn’t suffered any “material” trading losses linked to foreign-exchange volatility after the central bank’s decision.
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