UBS AG (UBS) has announced today that it expects to report a pre-tax profit of at least CHF 2.5 billion ($2.3 billion) in the first quarter of 2010. The news comes just prior to its Annual General Meeting which is scheduled on April 14. The company intends to report its first quarter results on May 4, 2010.
UBS has also experienced a decrease in net money outflows at all its business units compared to the fourth quarter of 2009. The company estimates the net outflows at its Wealth Management & Swiss Bank division to be around CHF 8 billion.
Additionally, outflows are expected to be around CHF 7 billion for Wealth Management Americas and CHF 3 billion for Global Asset Management divisions.
UBS reported a fourth quarter net profit of CHF 1.21 billion ($1.1 billion) compared to a loss of CHF 564 million in the third quarter and a loss of CHF 9.56 billion in the year-ago quarter. It was the first positive quarter since the third quarter of 2008. Results were aided by lower costs and a tax credit. However, the company experienced an increase in client money outflows.
UBS reported outflows of CHF 56.2 billion during the quarter, which picked up from CHF 36.7 billion incurred in the prior quarter but decreased from CHF 85.8 billion in the year-ago quarter.
During the fourth quarter of 2009, net new money outflows were CHF 33.2 billion for Wealth Management & Swiss Bank, CHF 12.0 billion for Wealth Management Americas and CHF 11.0 billion for Global Asset Management.
The global economic turmoil has severely hurt the Swiss banking major’s balance sheet when the subprime crisis led to record losses. Additionally, the issues emanating from the dilution of Swiss banking secrecy significantly challenges the company’s sustainable recovery.
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