ZURICH, July 29 (Reuters) - Switzerland’s biggest bank UBS on Friday scrapped short-term guidance on its profitability target amid market uncertainty.
“At least until we see sustainable stabilisation across the macroeconomic and geopolitical arenas, we believe it no longer makes sense to provide short-term return guidance,” Chief Executive Sergio Ermotti said in a call with analysts for the bank’s second-quarter results.
“However, we still believe we can achieve our targets in a more normalized environment.”
In its results presentation, UBS kept its target for adjusted return on tangible equity of more than 15 percent but no longer gives a timeline for the goal. It had previously guided for 2018. The bank also no longer gives expectations for adjusted RoTE for 2016 and 2017. (Reporting by Joshua Franklin; Editing by David Holmes)