UBS takes a hit from Archegos scandal as it reports first-quarter net profit of $1.8 billion

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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.

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