Switzerland’s largest bank, UBS Group AG, said Tuesday that its first-quarter earnings fell 52 per cent due to increased legal provisions over mortgage-backed securities (MBS) litigation issues.
The result came at a turbulent time for the Swiss bank after it was forced to acquire former rival Credit Suisse.
Net income attributable to shareholders came in at $1.03 billion, compared to an average of $1.71 billion expected by 15 analysts in a poll conducted by UBS.
UBS (NYSE:UBS) said it increased provisions relating to US mortgage securities litigation by $665 million.
“We are having in-depth discussions with the U.S. Department of Justice and are making progress in resolving legacy issues that go back 15 years,” Bank President Sergio Ermotti, who joined the bank to lead the acquisition, said in a statement. I am happy,” he said.