The Swiss bank UBS is at risk of making a loss in 2007 following the news it has written off nearly £5 billion in debts related to the sub-prime US mortgage sector. The £4.9 billion losses incurred from these write-offs are more than the bank’s profits last year according to a spokesman for the bank, with last year’s profits standing at around £4.85 billion.
So fragile is the world financial system at present that UBS looks set to make a loss, or at best very little profit, despite a reported cash injection just shy of £5 billion from the Government of Singapore Investment Coporation, in addition to a reported injection of just under £1 billion from the Oman government.
It is not only UBS which has been hit hard by the crisis, with Citigroup reporting losses of over £5 billion relating to the sub-prime crisis. Furthermore, Merrill Lynch have seen losses total £4 billion, whilst Morgan Stanley and HSBC have been forced to write-off around £1.75 billion each.
Swiss Bank UBS Suffers USD10 Billion Hit
Financial Services > e-banking > Banking news
Swiss Bank UBS Suffers USD10 Billion Hit
Wed, 19 Dec 2007
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