UBS will report a loss of just under
CHF2 billion ($1.7 billion) in the first quarter and client
outflows of CHF23 billion, Oswald Grübel, the bank’s
recently-appointed CEO, said in a speech.
The result are a big disappointment after the
bank previously declared it had had an improved start to the year,
with client inflows turning positive after outflows of CHF123
billion in 2008.
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Grübel said the outflows were mainly a result
of the announcement of settlements with US authorities in
connection with their investigations into cross-border services for
US private clients.
However, Wealth Management Americas recorded
net new money of CHF16 billion.
The bank lost a combined CHF3.9 billion on
illiquid risk positions, credit loss expenses and valuation
adjustments on assets transferred to the Swiss National Bank under
an asset guarantee scheme.
Grübel is planning cost savings of between
CHF3.5 billion to CHF4 billion by 2010, cutting 8,700 jobs from the
current 76,200. He said UBS would maintain its investment banking
business, though it would exit high risk areas.
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