The German business of UBS posted yet another loss last year. Switzerland’s biggest bank now promises that there won’t be any more disappointments in Europe's biggest market.
UBS Germany boss Thomas Rodermann in April warned that 2016 had ended with yet another disappointment. The annual report published recently revealed the hard facts behind the forecast: the unit had had a pretax loss of 71 million euros last year.
However, UBS Germany at least recorded an increase of assets under management. They rose to more than 40 billion euros, up from some 32 billion a year earlier, according to an estimate by «Boersen-Zeitung» (behind paywall).
Skewed Comparison
The results of 2016 however ought not to be compared with the figures for 2015, because UBS Germany had become part of the bank for Europe – UBS Europe SE – at the end of 2016. The bank has merged the entire wealth management business of Europe under one holding structure. It allows UBS to save on banking licenses in several European countries.
But with the merger, the German unit assumed part of the costs of the European business, which was one of the reasons for last year’s loss.
Breakeven in 2017
Rodermann, who is also in charge of UBS Europe, promised to reach breakeven by the end of this year. UBS told «Boersenzeitung» that the bank will be profitable on a sustainable basis starting in 2017.
The importance of achieving profitability had been impressed upon Rodermann not only by the group but equally so by the banking regulator.
