ZURICH: UBS Group AG on Tuesday reported a 52% slide in profit for the first quarter due to an increase in legal provisions for a legacy litigation matter.
The result comes at a tumultuous time for the Swiss bank after it was forced into taking over former rival Credit Suisse.
Net profit attributable to shareholders came in at US$1.03 billion versus the US$1.71 billion average of 15 analyst estimates in a UBS-conducted poll.
UBS said it increased provisions relating to US residential mortgage-backed securities litigation by US$665 million.
“We are in advanced discussions with the US justice department, and I am pleased that we are making progress toward resolving the legacy matter which dates back 15 years,” Chief Executive Sergio Ermotti, who has newly rejoined the bank to steer the takeover, said in a statement.