Swiss banking major UBS AG continued to be in the red for the third straight quarter, with losses of 1.40 billion Swiss francs for the three months ended June, bogged down by credit and restructuring charges.
UBS, one of the worst hit in the ongoing financial turmoil, had losses of 395 million Swiss francs in the same period a year ago.
The latest second quarter results include an "own credit charge of 1.21 billion Swiss francs, restructuring charges of 582 million Swiss francs and a goodwill impairment charge of 492 million Swiss francs related to the announced sale of UBS Pactual," the company said in a statement today.
Regarding the cross-border tax litigation in the US, the bank said that it expects to see a "definitive resolution".
Striking a cautious note, UBS Chief Executive Officer Oswald J Grubel said that sustainable economic recovery is "not yet visible" but added that market conditions improved steadily in the second quarter.
"... The overall economic environment in most of the regions in which we operate remains recessionary. Sustainable recovery is not yet visible," Grubel noted.
Excluding the own credit, goodwill impairment and restructuring charges, operational profit before tax would have been 971 million Swiss francs.
