UBS Expects Small Second Quarter Loss

Zurich, Switzerland (AHN) - UBS AG said Friday that it expects second quarter earnings to be slightly negative thanks to a tax credit that will help offset investment losses.

The Swiss bank said it will incur losses in its investment banking division and will take write-downs in the second quarter due to worsening market conditions. However, profits in its global wealth and asset management businesses will help offset the write-downs.

"The results reflect positive contributions from global wealth management and business banking and from global asset management, offset by a loss in the investment bank," the company said in a statement, according to MarketWatch.

For the second quarter, analysts were expecting a loss ranging from $980 million to $4.9 billion. Without the $2.9 billion tax credit, UBS would most likely record a large second quarter loss.

UBS also said they will not need to raise more capital. Over the past year, the bank was forced to acquire outside capital on two occasions.

The company reports second quarter earnings on August 12.

Shares of UBS closed Friday 2.6 percent lower on the Zurich exchange.