UBS Says It Had No Loss in Turmoil After SNB Scrapped Franc Cap
(Bloomberg) — UBS Group AG, Switzerland’s biggest bank, said its trading businesses didn’t suffer a loss in the market turmoil that erupted when the Swiss National Bank scrapped its limit on the franc.
“In aggregate, UBS did not experience negative revenues in its trading businesses in connection with the announcement,” the bank said in a statement Friday. It said it will provide further information on its outlook for the first quarter when it releases fourth-quarter results next month.
The SNB’s surprise announcement on Jan. 15 sent the franc soaring as much as 41 percent against the euro. The exchange rate has since been close to parity.
Credit Suisse Group AG, Switzerland’s second-biggest bank, has also said it suffered no “material” trading losses linked to foreign-exchange volatility after the end of the cap.
The stronger franc may push down UBS’s profit 14 percent, while Credit Suisse could suffer a 15 percent drop, Barclays Plc analysts led by Jeremy Sigee said in a note to clients after the SNB decision.
Citigroup Inc., Deutsche Bank AG and Barclays Plc are said to have suffered $400 million of cumulative losses from the Swiss central bank’s decision to end the cap, people familiar with the move said last week.
To contact the reporter on this story: Jeffrey Vögeli in Zurich at jvogeli@bloomberg.net To contact the editors responsible for this story: Elisa Martinuzzi at emartinuzzi@bloomberg.net Cindy Roberts, Simone Meier
