Ubi closes 2018 with a profit. In the fourth quarter of last year, the Swiss financial firm reported a net income of $696 million compared to a net loss of $2,4 billion in the same period of 2017. The 2017 loss was mainly due to a tax charge deferred for 3 billion linked to the "tax cuts and jobs act" promulgated in the fourth quarter of 2017.
Profit before tax came in at $861 million, up 2 percent from the fourth quarter of 2017 but below analysts' estimates of $985 million. In the fourth quarter, revenues amounted to 6,97 billion dollars (from 7,2 billion in the same period of 2017). The reduction in revenues is to be attributed to the geopolitical situation and a slowdown in the economy, Ubi claims in a note.
For the full year 2018, gross profit increased 19% to $6,373 billion (+2% adjusted to $6,445 billion), while net profit increased 25% to $4,897 billion. dollars, excluding the aforementioned extraordinary items for the fourth quarter of 2017 relating to the new tax provisions in the USA. The Cet1 capital ratio for the year is 13,1%, the cost/income ratio 79% (+3% y/y).
For 2018, the board intends to propose a dividend of 0,70 francs per share, 8% more than that paid out from the 2017 financial statements.
“The strength of our strategic and diversified choices were once again successful in the fourth quarter and produced a resilient and flexible performance despite the difficult market conditions” – commented the CEO, Sergio Ermotti – “We have seen some normalization of the markets as we enter the year, we remain focused on balancing efficiency and growth investments with the goal of achieving return on capital objectives while creating long-term value for our shareholders.
Despite the excellent annual data, the market focuses on the quarterly pre-tax profit, a result below expectations and in the Wall Street pre-market the stock loses more than 5%.
