The logo of Swiss banking giant UBS engraved on the wall is seen on its headquarters on May 8, 2019 in Zurich.
Fabrice Coffrini | AFP | Getty Images
LONDON — UBS reported on Tuesday net income of $1.8 billion for the first quarter of 2021, as it revealed a hit to earnings from the scandal involving Archegos Capital.
“Our first quarter results also factored in a loss related to the default by a single US-based prime brokerage client. We are all clearly disappointed and are taking this very seriously,” the Swiss lender said in a statement.
“A detailed review of our relevant risk management processes is underway and appropriate measures are being put in place to avoid such situations in the future.”
The bank said profit was $434 million lower as a result of the default.
Analysts had expected net income to come in at $1.6 billion over the period, according to Refinitiv.
This is a developing news story and will be updated shortly.