Due to legal preparations for past litigation, UBS Group AG (UBSG.S) announced a 52% drop in first-quarter earnings on Tuesday.
After being compelled to acquire Credit Suisse (CSGN.S), the Swiss bank is in turmoil.
The average of 15 analyst projections in a UBS survey was $1.71 billion, while shareholders received $1.03 billion.
UBS upped residential mortgage-backed securities litigation provisions by $665 million.
“We are in advanced discussions with the US Department of Justice, and I am pleased that we are making progress toward resolving the legacy matter which dates back 15 years,” said Chief Executive Sergio Ermotti, who returned to the bank to lead the acquisition.
