Swiss banking giant UBS today warned that it would have to make more credit-related provisions in the coming quarters due to the financial crisis, as it confirmed a two billion franc first quarter loss.
While market sentiment improved in the first three months of the year, trading in complex financial products remained illiquid, the bank said in a statement detailing its first-quarter losses, which are equivalent to €1.32 billion.
'The real economy has continued to deteriorate, and this is expected to have negative implications for credit-related provisioning in coming quarters,' the bank said.
UBS had already indicated that it expected a two billion franc loss for the first quarter in April, when it also said it would slash 8,700 jobs to cut costs.
