The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

UBS: Ermotti warns Q1 woes may persist

Little confidence profit warning relates to one-off; cost cuts not enough to compensate.

Sergio Ermotti, chief executive of UBS, has struck a downbeat note about the chances for a rebound in performance during an interview with Euromoney, after what amounts to a profit warning for the first quarter.

Sergio_Ermotti-UBS-2019-160x186

Sergio Ermotti,
UBS

UBS took the unusual step of publishing Ermotti’s comments at last week’s Morgan Stanley European financials conference in London, which is closed to the press. He estimated that first-quarter investment banking revenues would be down by a third.

Ermotti’s assertion that the environment in the first quarter, especially outside the US, was “one of the worst” in recent history helped push its share price down 5% last week, underlining sinking sentiment across the banking sector in Europe.

Speaking to Ermotti in advance of Euromoney’s official 50th anniversary edition, we asked how confident he could be that first-quarter conditions were a one-off.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree