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UBS is facing a credit loss expense of approximately 150 million Swiss francs (US$170 million) due to sluggish growth in Europe, particularly affecting Swiss corporates with export-import businesses. CFO Todd Tuckner noted that the integration of Credit Suisse is ongoing, with a pre-tax loss of US$700 million expected in the final quarter. He expressed optimism about the bank's performance in the Asia-Pacific region, despite uncertainties surrounding new capital requirements in Switzerland.
UBS anticipates increased credit losses in its home market due to a slowdown in the German economy, projecting provisions of around CHF 150 million for the fourth quarter of 2024, up from CHF 72 million the previous year. The bank's CFO noted that sluggish growth in Germany impacts Swiss companies involved in export-import activities. Additionally, the integration of Credit Suisse is expected to contribute to higher credit loss costs for its former clients.
UBS anticipates higher loan defaults in Switzerland, projecting provisions of around 150 million Swiss francs for Q4 2024, up from 72 million the previous year, due to a sluggish German economy impacting Swiss exporters. The bank also expects a pre-tax loss of approximately 700 million dollars in its Non-core and Legacy unit. Additionally, UBS faces uncertainty regarding capital regulations and potential impacts on future share buybacks and dividends, linked to the ongoing investigation into the Credit Suisse collapse.
UBS anticipates an increase in loan defaults in Switzerland for the fourth quarter of 2024, projecting provisions of around 150 million Swiss francs, up from 72 million the previous year. The Swiss bank attributes this rise to the sluggish German economy, which impacts local businesses, particularly in the export-import sector. Additionally, the integration of Credit Suisse is expected to contribute to higher credit loss costs for its former clients.
UBS CFO Todd Tuckner highlighted the "gloom" in European economies, noting that sluggish growth has led to credit losses of approximately 150 million Swiss francs in the bank's retail and corporate banking sectors during the fourth quarter. While the economic environment in Switzerland remains stable, Tuckner pointed out that the performance of Swiss companies engaged in export and import activities is impacted by weaker eurozone economies, particularly Germany. He also mentioned that the fallout from Credit Suisse's collapse has further complicated the situation.
UBS CFO Todd Tuckner highlighted the impact of sluggish economic growth in Europe on the bank's credit loss expenses, which are expected to reach approximately 150 million Swiss francs in the fourth quarter. He noted that while Switzerland's economy is stable, neighboring eurozone countries, particularly Germany, are struggling, affecting Swiss corporates involved in export-import activities. Tuckner also mentioned that the situation has been worsened by the dynamics following the collapse of Credit Suisse, which UBS acquired.
UBS CFO Todd Tuckner reported a credit loss expense of approximately 150 million Swiss francs in the fourth quarter, attributing it to sluggish economic growth in Europe, particularly affecting Swiss companies with export-import operations. He noted that while Switzerland's macro environment is stable, neighboring eurozone economies, especially Germany, are struggling, which has intensified the impact on credit losses. Tuckner also mentioned that the situation has been worsened by the dynamics following UBS's acquisition of Credit Suisse.
UBS is facing a credit loss expense of approximately 150 million Swiss francs ($170 million) due to sluggish growth in Europe, particularly affecting Swiss corporates with export-import businesses. CFO Todd Tuckner noted that the integration of Credit Suisse is ongoing, with a pre-tax loss of $700 million expected in the final quarter. He expressed optimism about the bank's performance in the Asia-Pacific region, despite uncertainties surrounding new capital requirements in Switzerland.
UBS CFO Todd Tuckner highlighted the impact of sluggish economic growth in Europe on the bank's performance, revealing a credit loss expense of approximately 150 million Swiss francs in its personal and corporate banking sector for the fourth quarter. While the macro environment in Switzerland remains stable, Tuckner noted that Swiss companies engaged in export-import activities are adversely affected by the economic conditions in neighboring eurozone countries, particularly Germany.
UBS Group (SWX:UBSG) is projected to achieve a 25.6% annual earnings growth over the next three years, driven by strategic expansions in emerging markets and digital transformation efforts. However, the company faces challenges, including a recent decline in earnings growth and a significant drop in net profit margins, which may impact investor confidence. Despite trading above its estimated fair value, UBSG's focus on enhancing customer engagement and operational efficiency could support its long-term success.
Todd Tuckner
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