UBS Misses Bond Trading Rally as Trump Volatility Stings
- Swiss firm underperforms American rivals in bond trading
- Equities revenue beat expectations on derivatives boost
UBS CEO Ermotti: Investors Confident But Awaiting U.S.
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UBS Group AG missed out on a jump in fixed-income trading activity that boosted U.S. rivals as it faced tougher emerging markets and was caught wrong-footed in trading after Donald Trump’s election victory.
Fourth-quarter revenue from foreign exchange, rates and credit trading dropped 12 percent to 341 million francs ($341 million), the bank said Friday. That missed the consensus estimate of 434 million francs, according to a note from JPMorgan Chase & Co.’s Kian Abouhossein. The drop was offset by a 22 percent surge in equities revenue to 891 million Swiss francs, which topped estimates on a boost from derivatives trading, Abouhossein said.