The third-quarter net loss was 830 million Swiss francs ($712 million), or 49 centimes a share, compared with net income of 2.2 billion francs, or 1.07 francs, a year earlier, Zurich- based UBS said in a statement today. UBS shares fell as much as 1.9 percent after the loss exceeded analysts' estimates.
The slumping U.S. housing market, which cost the world's biggest securities firms and banks more than $30 billion in bad loans and trading losses in the quarter, may lead to further write-downs, UBS reiterated today.
Chief Executive Officer Marcel Rohner, who replaced Peter Wuffli four months ago, said losses at the investment bank outweighed record earnings at UBS's wealth management operation, the world's biggest.
“The fixed-income and credit business are still exposed to the sub-prime and credit markets in the U.S.,'' said Stefan Raetzer, who helps manage about $28 billion at Allianz Global Investors in Frankfurt. “If a further weakening of the markets there occurs, UBS will have to make additional write-downs.''
UBS shares fell 45 centimes to 61.7 francs in the morning hours in Zurich on Tuesday.