Banks deemed too big to fail are sufficiently capitalized, Swiss banking group UBS AG CEO Colm Kelleher said, as his bank seeks to avoid regulations currently taking shape in Switzerland that would could affect business, reports Reuters, according to Agerpres.
"My personal opinion is that since 2008, too-big-to-fail banks have been more than adequately capitalized. This battle is a thing of the past," Kelleher said at an event in Brussels.
His statement comes after UBS reported better-than-expected quarterly results that boosted the stock, before sentiment soured amid uncertainty over when new Swiss regulations would be published.
The Swiss government announced in April proposals aimed at preventing a repeat of banking crises like the one in 2023, when Credit Suisse's problems forced the takeover of the bank by UBS. Government plans call for UBS to hold additional capital, although the bank has warned that such requirements could hurt business and have a negative impact on Switzerland.
Kelleher explained that regulators are looking back on the capital issue and should encourage banks to support the economy.
Late last month, UBS reported a net profit of $1.4 billion (euro1.3 billion) for the third quarter of 2024, roughly double what analysts expected, according to euronews.com. The profit translates to earnings per share of 43 cents. UBS's results were based on trading activity, supported by increased market volatility and cost cutting.
"In a market context that, although constructive, continued to present periods of high volatility, our businesses generated impressive revenue growth," said UBS chief executive Sergio Ermotti.
UBS returned to profit in the first quarter of 2024 after bailing out rival Credit Suisse at the request of regulators.
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