UBS used a DVA of $2 bln to set of its losses of $2.2 Bln at the Delta one Trading desk but the net profits of $1.2 bln so reported yet came at
a Cost Income ratio of 84% down from a bad 77% in Q2 even as banks like HSBC mark them at a below 50% target. The bank claimed that rising costs valued in Swiss Francs are the prime contributor to the cost spike
Wealth Management units and Global asset management however are immune as they have 80% and 75% of their assets outside Swiss. The bank still claims to have brought down costs by 9% to $6 bln from $6.6 bln (constant currency at 1.2 USD /CHF) with Personnel costs down half a billion
Its Wealth management assets total $1.6 tln and account for most of the profits. The bank also reported strategic sales in Wealth managment and Retail and Corp Banking of $600 mln and $270 mln respectively int he profit of $1200 mln. Suffice it to say, that the bank will look to decide on its Investment banking business yet
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