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UBS AG is to sale a part of actives
4 March 2008Swiss bank UBS AG still cannot recover from August of a level subprime credits crisis which has created threat of world financial system crash and has provoked mass in many markets.
Moreover, on March, 3rd 2007, analysts have warned, that the volume of write-offs of the Swiss bank can reach 15 billion dollars. On this background UBS’ shares have fallen in price on 4,3 %.
In comparison with March of the last year, UBS’ shares have already lost in the price more than 60 %. And now the majority of experts mark, that these negative financial parameters testifies only that the problems of the Swiss giant have not finished yet.
Last year UBS AG has informed on write-off of 18 billion dollars, provided by hypothec credits, and also by credit derivatives, depreciated in result of crisis in the US mortgage market.
Participants of the market speak that the Swiss bank has no other way to appeal for shareholders’ or foreign investors’ help. It is expected that the UBS board of directors will sale American actives of the bank. However, this step becomes large failure for the Swiss giant, which has for a long time tried to take a significant place in the American bank sector. But, on the other hand, it is one of the simplest ways to involve the capital that though somehow to overcome negative consequences of August credit crisis.
It is necessary to note, that in the beginning of December, 2007, UBS has already declared sale of 9 % shares in Singapore state company Government of Singapore Investment Corporation and hardly a smaller package - to not named investor from the Near East. Then the bank has declared, that the sale of bonds to the government of Singapore and not specified investor will result not only in large attraction of the capital, but they will also increase number of bank’s shares approximately for 12 %.
Let’s remind, that in 2007, pure losses of Swiss bank UBS AG have made 4,38 billion Swiss francs (2,72 billion euro) in comparison with net profit at the rate of 12,26 billion Swiss francs (7,62 billion euro), received year earlier. And pure losses of UBS, in IV quarter 2007, have made 12,45 billion Swiss francs (7,74 billion euro) in comparison with net profit at the rate of 3,41 billion Swiss francs (2,12 billion euro), received a year earlier.
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