Fate of UBS Is in the Hands of Fickle MarketsBy
Investing in UBS is a bet on an uncertain world.
The Swiss bank reckons resurgent investors may bolster its tepid 6.1 percent return on equity for 2016. But after a fourth quarter marked by net outflows of $5.4 billion and a further withering of wealth management margins, the hopes of the bank’s chief executive, Sergio Ermotti, for a pickup in activity need quick consummation.
Investment banking and wealth management in the Americas were bright spots in the three months to December. UBS has less firepower in fixed-income trading, which has been booming. But revenue jumps in equities trading and in the origination and advisory business were bigger than at its rivals. Meanwhile, higher short-term interest rates and higher fees helped revenue at UBS Wealth Management Americas…
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