ZURICH – UBS‘s direct publicity to Russia made up $634 million of the Swiss financial institution’s complete rising market publicity of $20.9 billion on the finish of 2021, the financial institution stated in its annual report.
Switzerland’s greatest financial institution stated whereas its direct publicity was restricted and had been decreased since year-end 2021 this might be affected by sanctions and different measures.
“Our present direct publicity to Russia, Ukraine and Belarus is proscribed,” UBS stated. “Nonetheless, market closures, the imposition of trade controls, sanctions or different measures could restrict our potential to settle present transactions or to grasp on collateral, which can end in sudden will increase in exposures.”
That included open transactions with Russian counterparties, together with each Russian banks and different Russian entities, it stated.
Its Russian subsidiary moreover held some $51 million in web belongings not mirrored within the complete quantity.
The worldwide banking trade has been thrown into turmoil since Russia’s invasion of Ukraine, as Western banks uncovered face fallout from the ensuing sanctions on Russia and as monetary markets present indicators of stress over the potential wider financial fallout.
UBS highlighted dangers from heightened risk of cyber-attacks in addition to the chance of not rapidly figuring out consumer exercise topic to new sanctions.
“We're working to implement sanctions imposed by Switzerland, the US, the EU, the UK and others – all of which have introduced unprecedented ranges of sanctions in opposition to Russia and sure Russian entities and nationals,” Chairman Axel Weber and Chief Government Ralph Hamers stated in a letter to shareholders.
UBS, the world’s greatest wealth supervisor, stated it had recognized a small variety of international wealth administration purchasers topic to not too long ago launched sanctions, with complete loans excellent to such clients amounting to lower than $10 million.
The Zurich-based financial institution stated as of March 3 its wealth administration enterprise additionally had round $200 million in so-called Lombard loans – loans to rich clients secured in opposition to shares or different belongings – and secured financing backed by Russian belongings as collateral.
The wealth administration enterprise’s gross loans at end-2021 totalled $234.1 billion, based mostly on the annual report.
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