01/04/08...5:31 am
UBS May Have Further $11 Billion Writedown, Merrill Lynch Says
By Sarah Jones
March 31 (Bloomberg) — UBS AG, Europe’s biggest bank by assets, may write down a further $11 billion in the first quarter and post a loss in 2008, according to Merrill Lynch & Co.
The brokerage also slashed its full-year earnings-per-share estimate for Credit Suisse Group, Switzerland’s second-largest bank, by 13 percent.
“We expect the Q1 results will bring another wave of writedowns and earnings disappointments,” London-based analysts including Derek De Vries wrote in a report to investors today. “We still think the Swiss banks will need to write down their exposure to Alt-A assets, subprime assets, leveraged finance, and commercial real estate.”
Merrill Lynch lowered its 2008 forecast for UBS to a loss and cut its 2009 earnings-per-share estimate by 6 percent. The brokerage also reduced is 2009 EPS projection for Credit Suisse by 4 percent.
Credit Suisse, which already pre-announced a loss for the first quarter, may write down $2.7 billion, resulting in a loss of 200 million Swiss francs ($201 million), the analysts said.
Merrill Lynch maintained its “neutral” recommendations on UBS and Credit Suisse shares.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
Deixe uma resposta