Global wealth manager UBS AG (UBS) announced Thursday it expects to return slight Q3 profits after cutting its exposure to U.S. residential mortgages. “Despite extremely volatile market conditions, UBS currently expects to report a small profit for the third quarter, based on preliminary estimates,” the company said in a brief press statement. The bank was “hit hard by the credit crisis after building massive positions in risky mortgage debt,” MarketWatch reported Thursday. The move away from troubled and unprofitable U.S. mortgage markets — coupled with some 1,900 job cuts — should, however, enable the Swiss banking giant to bounce back. UBS stock rose 8.1 percent after the announcement, indicating at least some short-term investor confidence in the banking giant’s ability to recover from a mortgage-turned-credit mess. “We have adjusted our cost base and head count to respond to the current market challenges and we will continue to do so in the coming months to ensure a return to profitability at the earliest possible time,” UBS chairman Peter Kurer told the media. UBS will post its fall earnings Nov. 4. For more information, visit Disclosure: The author held no relevant positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.

Most Popular Articles

3 housing trends to watch for in 2020

The year 2020 is now upon us, and as we say goodbye to 2019, we welcome a new decade and all the twists and turns it will bring for the housing industry.

Dec 02, 2019 By

Latest Articles

When it comes to their home, Millennials are picky

According to a new data set from the National Association of Home Builders, Millennials care just as much (if not more) about they want in a house rather than what they need.

Dec 05, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please