UBS re-confirms Group third quarter pre-tax loss in line with CHF 600 - 800 million range given on 1 October 2007
UBS confirms the expected pre-tax loss and gives a business outlook for the fourth quarter.
A media report over the weekend has suggested that UBS may face additional writedowns in trading positions related to the US sub-prime residential mortgage-backed securities market.
Although UBS will release quarterly results tomorrow, it would like to re-confirm that it will report an overall group loss that is within the range of CHF 600-800 million given in the announcement on 1 October 2007.
UBS would also like to state that the fourth quarter has started with good results from all businesses, including the Investment Bank. However, the FICC business remains exposed to further deterioration in the US housing and mortgage markets as well as rating downgrades for mortgage-related securities, which could lead to further writedowns on the positions. As a result, UBS is not assuming that the quarter will continue as positively as it has begun, or that the current difficulties will be resolved in the short term.
UBS will provide additional comment on its third quarter results and outlook tomorrow by live webcast at 9 a.m. Central European Time (CET). The results webcast will be broadcast on www.ubs.com/investors. The press release will be issued at 7 a.m. CET.