UBS foresees more credit-related provisions
ZURICH: Swiss banking giant UBS has warned it would have to make more credit-related provisions in the coming quarters due to the financial crisis, as it confirmed a two billion franc first quarter loss.
While market sentiments improved in the first three months of the year, trading in complex financial products remained illiquid, the bank said in a statement detailing its first quarter losses, which are equivalent to 1.32 billion euros or 1.77 billion dollars.
"The real economy has continued to deteriorate, and this is expected to have negative implications for credit-related provisioning in coming quarters," said the bank.
UBS had already indicated that it expected a two billion franc loss for the first quarter in April, when it also said it would slash 8,700 jobs to cut costs.