UBS predicts impact of Swiss tax deals

16th November 2010, Comments 0 comments

UBS said on Tuesday that up to 40 billion Swiss francs of the bank's invested assets might be affected by new dual taxation agreements between Switzerland and major economies that soften banking secrecy.

The Swiss bank said it was nonethless regaining the trust of customers two years after the financial crisis and a state rescue package, and reconfirmed its medium term targets during its annual Investors Day in London.

"UBS today is built on its distinctive strengths and is regaining client trust," said chief executive Oswald Gruebel.

"We believe that we are on track with the transformation of our business and we confirm our medium-term targets outlined last year," he added.

Nonetheless, the banking giant signalled that "between 15 billion (15.2 billion dollars, 11.2 billion euros) and 40 billion Swiss francs of UBS's invested assets may be affected by potential changes to European double taxation treaties with Switzerland."

Analysts at Vontobel bank said the amount represented two to five percent of invested assets and was in line with their previous estimates.

The flagship Swiss bank returned a third quarter profit this year of 1.7 billion francs against a 564 million franc loss a year earlier.

It also won back client cash for the first time since the crisis with net new money flows of 1.2 billion francs, turning around a trend of withdrawals by unsettled clients.

UBS's medium term targets are dominated by expansion in Asia, targeting overall pre-tax profit of 15 billion francs.

© 2010 AFP

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