Bulletin: UBS Group AG Intends To Appeal French Court's €4.5 Billion Fine And Damages

LONDON (S&P Global Ratings) Feb. 20, 2019--The French trial court today found two UBS Group AG (UBS; A-/Stable/A-2) subsidiaries guilty of illicit solicitation and laundering the proceeds of tax fraud. The charges related to allegations regarding historical wealth management services provided to French clients by certain Swiss-based UBS advisers. The court's assessment was that UBS should pay €3.7 billion in penalties and €0.8 billion in civil damages. The €4.5 billion aggregate amount exceeds UBS' net profit for 2018, which stood at €4.2 billion ($4.9 billion). In response to the court's judgment, UBS announced that it strongly disagrees with the verdict and will appeal it in the French appeal court, which will retry the case in its entirety. We expect the

...LONDON (S&P Global Ratings) Feb. 20, 2019--The French trial court today found two UBS Group AG (UBS; A-/Stable/A-2) subsidiaries guilty of illicit solicitation and laundering the proceeds of tax fraud. The charges related to allegations regarding historical wealth management services provided to French clients by certain Swiss-based UBS advisers. The court's assessment was that UBS should pay 3.7 billion in penalties and 0.8 billion in civil damages. The 4.5 billion aggregate amount exceeds UBS' net profit for 2018, which stood at 4.2 billion ($4.9 billion). In response to the court's judgment, UBS announced that it strongly disagrees with the verdict and will appeal it in the French appeal court, which will retry the case in its entirety. We expect the appeal process to take an extended period. Therefore, the ultimate verdict--and any associated costs incurred by UBS--will be unclear for some time. The fine announced today exceeds the amount we assumed in our capital projections. Nevertheless,...

Bulletin