ZURICH (Reuters) – UBS on Tuesday reported a 52% drop in first-quarter profit due to an increase in provisions related to a dispute over residential mortgage-backed securities (RMBS) in the United States. United.
The drop in profit comes at a turbulent time for the Swiss bank, which in March was forced to buy its struggling competitor Credit Suisse.
Net profit, group share, fell to 1.03 billion dollars (930 million euros), against 1.71 billion expected on average by 15 analysts according to a consensus provided by the establishment itself.
UBS raised US mortgage-backed securities litigation provisions by $665 million.
“Our demarches to the US Department of Justice are at an advanced stage and I am pleased that we are making progress toward resolving this legacy issue that dates back more than 15 years,” chief executive Sergio said in a statement. Ermotti, who recently returned to head the establishment to lead the takeover of Credit Suisse.
(Report Noele Illien, written by Edwina Gibbs; Diana Mandiá)
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