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TMCNet:  UBS books big charges after tax probe, lawsuits [Khaleej Times (United Arab Emirates)]

[July 30, 2014]

UBS books big charges after tax probe, lawsuits [Khaleej Times (United Arab Emirates)]

(Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) The bank on Tuesday reported a quarterly net profit of 792 million Swiss francs from 690 million francs a year earlier, when results were marred by an $885 million settlement with the US housing regulator over the mis-selling of mortgage-backed bonds.


UBS booked a 254 million Swiss franc ($280.79 million) charge in the second quarter mainly to settle claims it helped wealthy Germans to dodge taxes, the latest in a string of lawsuits that have targeted its private banking business.

The Zurich-based lender's offices in Germany were searched last year as part of an investigation of 750 cases involving foundations, a probe sparked by a CD with details of UBS clients that was purchased by the German state of North Rhine-Westphalia (NRW). UBS, which faces a separate probe in Germany and similar probes in Belgium and France, said it aims to have all of its German clients come clean by year-end, from more than 95 per cent currently.

"The future outflow of resources in respect of such matters cannot be determined with certainty based on currently available information, and accordingly may ultimately prove to be substantially greater (or may be less) than the provision that we have recognized," the bank wrote in its second-quarter report.

The bank on Tuesday reported a quarterly net profit of 792 million Swiss francs from 690 million francs a year earlier, when results were marred by an $885 million settlement with the US housing regulator over the mis-selling of mortgage-backed bonds.

The result beat expectations in an analyst poll conducted by Reuters, which averaged 774 million francs.

The settlement comes less than a week after a 15-month French inquiry into UBS escalated, with the bank put under formal investigation on allegations it laundered the proceeds of tax evasion.

(c) 2014 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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