Battered Swiss bank UBS AG expects to post at worst a small loss in the second quarter as a 3 billion Swiss franc ($2.96 billion) tax credit offset further investment banking losses, the bank said.
"The results reflect positive contributions from global wealth management and business banking and from global asset management, offset by a loss in the investment bank," UBS said this morning.
"In connection with the losses to date, the second quarter results include a tax credit of approximately CHF 3 billion. Analysts had expected a second-quarter loss of up to 5 billion Swiss francs.
The Swiss bank said further market deterioration led to writedowns and losses on previously disclosed investment bank risk positions, in particular in its monoline insurance exposures.
Group net new money for the period was also negative, UBS said.
UBS said its Tier 1 capital ratio would be approximately 11.5 per cent at the end of the first quarter, reiterating it has no need to raise new equity.
With writedowns of $37 billion, UBS has been Europe's hardest hit bank of the subprime crisis so far.
UBS will release its second-quarter results as planned on August 12th, the bank said.