UBS claims £1.47bn tax credit on sub-prime losses

UBS announced that it will 'break-even' in its results for the second quarter.

The bank, which will release its results next month for the period ended June 30, said it will however make a small loss.

UBS was expected to report losses 5bn Swiss francs but it said that a 3bn Swiss franc tax credit would offset further losses in its investment banking sector.

'The results reflect positive contributions from Global Wealth Management & Business Banking and from Global Asset Management, offset by a loss in the Investment Bank. Further market deterioration led to writedowns and losses on previously disclosed Investment Bank risk positions, in particular credit valuation adjustments on monoline insurance exposures.

'Write-downs were mitigated by continued exposure reductions and by hedge benefits. In connection with the losses to date, the second quarter results include a tax credit of approximately CHF 3 billion,' the bank said in a statement.

UBS expects its Tier 1 capital ratio to be approximately 11.5%, and has no need to raise new equity.

Further reading:

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