UBS says tax credit will partly offset losses

AP

UBS AG, Switzerland's largest bank, said yesterday it expects its second-quarter results to be "at or slightly below break-even" due to a tax credit that will at least partly offset investment losses. It also said it won't need to ask for more capital when it reports the results next month. Analysts had expected a second-quarter loss of as much as $4.9-billion (U.S.) from the bank that has been hammered by big losses related to the U.S. subprime lending crisis. Shares in the crisis-hit bank jumped 8.2 per cent on the announcement, but soon fell back as analysts noted that without the unexpected tax credit of three billion Swiss francs ($2.99-billion Cdn.) UBS would record a significant loss. UBSN (Zurich) fell 54 centimes to 20.48 Swiss francs.