2 months ago
Stock Market

MarketPulse Europe: UBS Earnings Miss Drags Financial Sector Lower

Investing.com - The European financial sector was on the backfoot in midday trade on Tuesday, as sentiment was dampened after

Investing.com - The European financial sector was on the backfoot in midday trade on Tuesday, as sentiment was dampened after fourth-quarter earnings from UBS (SIX:UBSG) fell short of expectations.

The Swiss bank generated $862 million in fourth-quarter pre-tax earnings, missing analyst expectations for $985 million in its own consensus report.

Results were hit by an outflow of funds in its flagship wealth management business and a slide in investment bank earnings.

UBS said client activity in the first quarter of 2019 would be affected by a "lack of progress in resolving geopolitical tensions, rising protectionism and trade disputes along with increased volatility."

Shares were down by more than 4% in Zurich by 6:40AM ET (11:40 GMT).

The worrying news also had an impact on shares of rivals Credit Suisse (SIX:CSGN) and Julius Baer (SIX:BAER), which fell 1% and 3% respectively.

The pan-European Stoxx 600 Banks index was down by around 1.3%.

Some of the notable decliners across the continent include Germany's Deutsche Bank (DE:DBKGn), France's BNP Paribas (PA:BNPP) and Italy's Unicredit (MI:CRDI), which were down 3.7%, 2.4% and 2.3% respectively.

-- Reuters contributed to this report