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UBS scraps short-term return guidance due to market uncertainty
July 29, 2016 / 7:46 AM / a year ago

UBS scraps short-term return guidance due to market uncertainty

ZURICH (Reuters) - Switzerland’s biggest bank UBS (UBSG.S) on Friday scrapped short-term guidance on its profitability target amid market uncertainty.

The logo of Swiss bank UBS is seen on a building in Zurich, Switzerland December 19, 2012. REUTERS/Michael Buholzer/File Photo

“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

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