Swiss banking giant UBS said Tuesday that its net profit fell 18 percent to 1.8 billion francs ($2 billion) in the first quarter, hurt by a tax charge and higher personnel costs.

"/> Swiss banking giant UBS said Tuesday that its net profit fell 18 percent to 1.8 billion francs ($2 billion) in the first quarter, hurt by a tax charge and higher personnel costs.

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BANK

Taxes hit UBS profits

Swiss banking giant UBS said Tuesday that its net profit fell 18 percent to 1.8 billion francs ($2 billion) in the first quarter, hurt by a tax charge and higher personnel costs.

Taxes hit UBS profits
UBS

Nevertheless, the result was slightly better than the 1.7 billion francs forecast by analysts for the period.

The group also recorded net new money of 22.3 billion francs in the first quarter, marking a recovery from a year ago when outflow reached 18 billion francs.

Group chief executive Oswald Gruebel said: “I am satisfied with our result considering market activity during the first quarter, and I am particularly pleased by the increase in net new money, confirming the return of client trust and confidence.”

UBS said it expected improvement in parts of its investment banking business for the coming quarter, but that competition for talent and salary increases would put pressure on its expenses.

BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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