GO
Loading...

UBS Risk Exposure Significantly Reduced: CEO

Reuters
Tuesday, 8 Jan 2008 | 10:37 AM ET

UBS's risk exposures have been significantly reduced and the bank does not require further capital injections to shore up its finances, CEO Marcel Rohner told a Swiss newspaper.

"Yes, our risk positions have become substantially smaller," Rohner told business newspaper Handelszeitung in an interview, released on Tuesday ahead of publication.

UBS shares jumped on the news and were trading 4.0 percent higher at 1505 GMT.

Rohner also was quoted as saying that UBS, which last month announced a new $10 billion writedown on its subprime-related exposures and a capital injection from Singapore and an unnamed Middle East investor, did not need any fresh capital.

Asked by the newspaper if a fresh infusion of funds was needed, Rohner replied: "No, thanks to the commitment of new capital of a size of 13 billion Swiss francs ($11.65 billion) and the replacement of the cash dividend with a share dividend, we are able to strengthen our capital basis enough."

UBS has been one of the biggest casualties of the collapse in the U.S. subprime mortgage market, which resulted in billions of dollars in writedowns by banks that saw the value of their securities portfolios shrink dramatically.

Rohner told the newspaper that UBS intended to return any excess capital to shareholders through buybacks of stock and dividend payouts.

  Price   Change %Change
UBSN
---

Banks