UBS reports Q1 loss of CHF 2.0 bln

UBS reports Q1 loss of CHF 2.0 bln; quarter-end BIS tier 1 ratio of 10.5% Co reports Q1 net loss attributable to shareholders of CHF 1,975 mln.

Losses were driven primarily by risk positions in businesses now exited or in the process of being exited by the Investment Bank. Results include a CHF 0.6 bln goodwill impairment charge related to the announced sale of UBS Pactual.

Net new money outflows totaled CHF 23.4 bln for Wealth Management & Swiss Bank; Wealth Management Americas reported net new money inflows of CHF 16.2 bln; net new money outflows slowed to CHF 7.7 bln in Global Asset Management

Capital and balance sheet:
Bank reports BIS tier 1 ratio of 10.5% and BIS total ratio of 14.7% at quarter-end; pro-forma BIS tier 1 ratio of 11.0% including the effect of the announced sale of UBS Pactual.

Total risk-weighted assets under Basel II declined 8.1% during the first quarter to CHF 277.7 bln.

As announced on 15 April 2009, operating expenses expected to decrease by CHF 3.5 to 4 bln by the end of 2010.

Outlook: Co notes there has been an improvement in market sentiment during the first quarter, with a strong rebound in global stock market indices since early March, but the credit markets improved only partly and trading in complex financial products remains illiquid. The markets continue to be unsettled, and UBS remain cautious on the immediate outlook for UBS.

The strong influence that government policy has on the market environment was clearly demonstrated in the first quarter as investors became less risk averse. However, the real economy has continued to deteriorate, and this is expected to have negative implications for credit-related provisioning in coming quarters.