UBS estimates that for the second quarter of 2013 its operating profit before tax was approximately USD 1.09 billion and its net profit attributable to shareholders was approximately CHF 690 million (USD 737 million). “Our Basel III common equity tier 1 ratio is expected to improve significantly to approximately 11.2% on a fully applied basis and 16.2% on a phase-in basis”, said the bank in a press release.
The bank reports strong net new money in our wealth management businesses with net inflows of approximately CHF 10.1 billion (USD 10.8 billion) in Wealth Management and net inflows of CHF 2.7 billion (USD 2.9 billion)in Wealth Management Americas, with net outflows of CHF 2.0 billion (USD 2.1 billion) in Global Asset Management.
UBS has reached an agreement in principle with the Federal Housing Finance Agency (FHFA) to settle claims relating to US residential mortgage-backed securities (RMBS) offerings between 2004 and 2007. This case, which we have highlighted in our litigation note since the third quarter of 2011, is one of a group of cases related to RMBS offerings filed by the FHFA against 18 financial institutions. The settlement, which is subject to documentation and final approvals by the parties, would encompass pending RMBS-related litigation brought by the FHFA against UBS on behalf of Fannie Mae and Freddie Mac as well as certain unasserted claims. The full cost of the settlement is covered by litigation provisions established by UBS during the second quarter of 2013 and in prior periods.
Finally the bank says that their full financial report for the second quarter of 2013 will be issued as scheduled on 30 July 2013.