The UBS has today presented its results. In the context of a media conference UBS CEO Sergio Ermotti commented to rumors about his successor. He found the stories to be entertaining. It’s a mixture thereof, to read his own obituary – and, in some cases, it was like a mosquito in the middle of the summer. “It is something you would like to get rid of”, the UBS chief.
Recently, rumors had made the rounds, that the UBS Board of Directors had increased the activities to find a successor to Ermotti. The Name Christian Meissner fell. Meissner is Austrian and was abandoned before Christmas, his Job as head of the investment Bank of Bank of America. Martin Blessing, Co-head of Wealth Management at UBS, is regarded as the hot candidate on the head chair.
“I am immortal”
if You have installed a process to keep internal and external talent information, said Ermotti at today’s press conference. “I started this process back in November of 2011, when I was appointed the chief,” said Ermotti. “This is part of my job and that of Chairman of the Board, Axel Weber, this view of things is constant.”
And he added: “I’m not immortal, so one day will have to determine someone over to my successor.” Any kind of change, but it is “years away”.
Today, Ermotti has communicated, also, for the first Time on a new channel: He took to his own Twitter Account in operation. He writes – including Emoji and Hashtag #my first tweet, he will share on this channel in the future, his views. “However, not all of them, don’t worry,” said the Bank chief.
Good morning. Happy to join. On my account I’ll share my views – don’t worry, not all of them. 🙂 Looking forward to it. #MyClass tweet
— Sergio Ermotti (@UBS_CEO) 22. January 2019
Difficult fourth quarter
UBS was today given the Numbers known. The big Bank has earned in the fourth quarter, less than market experts expected. The bottom line is the Bank, which reported their figures, more recently, in U.S. dollars, a profit of 696 million US dollars. In the total year 2018, there were 4,90 billion. This is significantly more than in the previous year.
in 2017, had made the Bank a profit of 1.2 billion Swiss francs. The balance of the year, the tax reform of the US President, Donald Trump had clouded. This had led the Bank to a copyist in the amount of 2.9 billion Swiss francs.
After the announcement of the quarterly report, the UBS share price plummeted on the stock exchange. (Image: Screenshot of Finance and the economy)
The share was clearly in the Minus. Around 10.30 am, this was at -4 percent.
To the media Ermotti said the fourth quarter had been challenging, but it will count the final result: “We had a robust Performance,” said the CEO.
dividend
The shareholders will have the improved earnings in the Form of a of 65 cents to 70 cents increase in the dividend part, the largest Swiss Bank. In addition, the large Bank is planning in the context of its ongoing buyback programme in the current year, to acquire title, in a volume of 1 billion US dollars. 2018 repurchases in the amount of 750 million Swiss francs were made.
On rapportierter the Basis of the UBS pre-tax earned 862 million US dollars, and ends only slightly better than in the prior-year period, (845 million). The market expectations were not fulfilled: The AWP consensus for net profit came in at 751 million, the one for the pre-tax profit of $ 960 million.
outflow of customer funds in the final quarter of
Of particular importance for the largest wealth managers in the world, the new assets from customers. According to an inflow of 13.5 billion Swiss francs in the third quarter, the Bank had to accept in the final quarter of an outflow in the amount of 7.9 billion dollars. In the total year of the Bank by its customers, were entrusted to a net 24.7 billion.
Among other things, customers have reduced – especially in the Asian region – debt. Another reason was, according to UBS is that some larger customers, must so – called Family Offices – UBS left. The Bank was not concerned about it. This is normal in this business, it was said at an event for journalists. The managed assets at the end of the year on 3101 billion U.S. dollars and were approximately 230 billion lower than at the end of September.
Investment Bank earns only a little
Also, UBS Investment Bank, suffered strong distortions in the Stock market. Although the increased volatility affects certain areas, such as foreign exchange, is positive, the majority (of shares , structured products, etc.) suffer, however, under strong decline in customer activity. The pre-tax profit fell because of 84 percent to a still modest $ 26 million, on rapportierter the Basis of a loss of 47 million.
The Swiss core business (P&C Banking) also had to fight. Lower (transaction-based) income and higher impairment charges for credit risks, expressed according to UBS the yield, while remained broadly unchanged. The (adjusted) pre-tax profit in the fourth quarter fell year-on-year by 13 percent to 373 million Swiss francs.
trade conflicts continue to weigh on
For the next few quarters, the largest Swiss Bank, in view of the uncertainties carefully. The subdued mood is likely to weigh on client activity. The lack of progress in the resolution of geopolitical tensions, increased protectionism and trade conflicts, which have affected, in addition to increased volatility of the mood and the confidence of investors in the second half of the year, and particularly in the fourth quarter of 2018, is likely to have an impact in the first quarter of 2019 to the customer’s activity, writes UBS. (cfr/sda)
Created: 22.01.2019, 06:47 PM
