UBS pre-announces full-year and fourth quarter 2007 results
UBS will report a net loss attributable to shareholders of approximately CHF 4.4 billion for full-year 2007.
On 10 December 2007, UBS indicated it may record a net loss for full-year 2007.
UBS now expects to report a net loss attributable to shareholders of approximately CHF 4.4 billion for full-year 2007.
For fourth quarter 2007, the net loss attributable to UBS shareholders will be approximately CHF 12.5 billion. These results reflect weak trading revenues in the Fixed Income, Currencies and Commodities (FICC) business in the Investment Bank. FICC numbers will include around USD 12 billion (CHF 13.7 billion) in losses on positions related to the US sub-prime mortgage market and approximately USD 2 billion (CHF 2.3 billion) on other positions related to the US residential mortgage market.
UBS will provide further details on its financial performance on 14 February 2008, when it publishes its final full-year and fourth quarter 2007 results.
On 10 December 2007, UBS also announced a capital improvement program. Two elements of this - replacement of the cash dividend with a stock dividend and a decision to rededicate treasury shares for disposal - immediately contributed to BIS Tier 1 capital. During fourth quarter 2007, UBS reduced its balance sheet and risk weighted assets. This process included the sale of some positions at a loss. The combination of the fourth quarter result, the stock dividend, the re-issue of treasury shares and the reduction in risk weighted assets mean that UBS will report a BIS Tier 1 ratio of 8.8% as of 31 December 2007. This number does not take into account proceeds from the Mandatory Convertible Notes, which, if approved at the Extraordinary General Meeting on 27 February 2008, will further strengthen UBS's Tier 1 capital.