UBS down 1.98b Swiss francs in Q1

UBS AG, the European bank with the biggest writedowns from the financial crisis, posted a net loss of 1.98 billion Swiss francs ($1.75 billion) in the first quarter, matching an estimate provided on April 15, and said bad loans may rise further as the global economy worsens.

Loans to Swiss companies and to finance leveraged buyouts may lead to higher provisions later this year, the Zurich-based company said yesterday. UBS is Switzerland's largest bank by assets.

CEO Oswald Gruebel has announced 7,500 job cuts, replaced two executive board members and sold UBS's Brazilian business since he was hired in February. He told shareholders at the annual meeting last month that restoring profitability is UBS's "most urgent" task as it tries to regain the confidence of clients and investors.