UBS reported better than expected third quarter net profits of more than SFr1bn ($1.13bn), in spite of a massive unauthorised trading loss that cost the group SFr1.85bn
UBS reported better than expected third quarter net profits of more than SFr1bn ($1.13bn), in spite of a massive unauthorised trading loss that cost the group SFr1.85bn.
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The Swiss banking group’s earnings compared with analysts’ estimates of around SFr300m, but were distorted by a large number of one-off items, complicating comparisons with previous periods.
The results were also better than the bank’s own indication earlier this month, issued in response to the discovery of a $2.3bn unauthorised trading loss at its London equity derivatives operation, that it would make a “modest” profit in the period.
Third-quarter earnings were flattered by a higher-than-expected SFr1.77bn gain booked on changes to the value of the bank’s own debt, as well as a slightly lower-than-expected SFr387m in restructuring charges.
Pre-tax profits of SFr980m compared favourably to the SFr818m made in the same period last year. However, the year earlier results had been boosted by a surprise SFr825m tax gain. By contrast, UBS paid SFr40m in tax in the third quarter of this year.
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