UBS CFO - balance sheet work still needs to be done

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UBS Chief Financial Officer Tom Naratil said the financial industry needs to continue deleveraging as the size of bank assets hasn’t 'substantially changed' since the global financial crisis.

Bloomberg reports that Naratil, 51, told investors at a Bank of America Merrill Lynch conference in London: 'The need for further industry deleveraging is clear', adding that UBS also needs to reduce its leverage, or assets versus capital.

Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley and UBS boosted their cumulative common equity by 59% from the end of 2007 through June to $681bn, according to Naratil’s presentation slides. At they same time, they reduced funded assets by 16% to $9.25 trillion, they showed.

UBS plans to reach its targeted 13% common equity ratio under fully applied Basel III rules in 2014, with an aim to pay out more than 50% of earnings in dividends afterwards, Naratil said. UBS also plans to cut its leverage further over 'the next few years', he added.

To access the complete Bloomberg article hit the link below

UBS CFO Naratil Says Banks Need to Deleverage Further

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