UBS earnings declined in Q4

Swiss bank UBS  reported net income of 738 million Swiss francs (US$736 million) in the fourth quarter, compared with 949 million a year earlier, due in part to tax effects, but says rising investor confidence in the United States could boost its wealth management business. 

"Despite a very challenging market environment in 2016, we achieved solid results, thanks to our balanced business and geographic mix, as well as our strong focus on executing our strategy," said CEO Sergio Ermotti. 

UBS also recorded more than 1 billion francs in negative income due to cash-flow hedges, citing a drop in unrealized gains from hedging derivatives as long-term interest rates increased.  Net operating profit jumped to 848 million francs, up from 234 million a year earlier. 

UBS saw its 2016 net profit fall to 3.3 billion Swiss francs ($3.3 billion) from 6.2 billion in 2015, yet this beat analysts' forecasts, in part thanks to a better-than-expected showing in its equities business.
UBS proposed an unchanged ordinary dividend of 0.60 francs, in line with market expectations.

With profit from its core wealth management business under pressure, the bank pointed to growing investor confidence in the United States towards the end of 2016 as a sign clients could be ready to get off the sidelines and back into the market.
"Although macroeconomic uncertainty, geopolitical tensions and divisive politics continue to affect client sentiment and transaction volumes, we have begun to observe improved investor confidence, primarily in the U.S., which may benefit our wealth management businesses," Switzerland's biggest bank and the world's biggest wealth manager said in a statement.