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UBS CFO: Bank Planning to Sell Contingent Capital

UBS CFO: Bank Planning to Sell Contingent Capital

The chief financial officer of Switzerland's biggest bank, UBS AG, told reporters on a recent conference call that the bank plans to sell its contingent capital soon in order to comply with Swiss requirements, Bloomberg reports.

 

The chief financial officer of Switzerland's biggest bank, UBS AG, told reporters on a recent conference call that the bank plans to sell its contingent capital soon in order to comply with Swiss requirements, Bloomberg reports.

CFO Tom Naratil said that the bank prefers "non-dilutive" contingent capital, meaning it will likely not go the way of Credit Suisse Group AG, which issued bonds that convert into shares when capital drops beneath a certain level.

Naratil added that the financial institution is confident that there would be demand for bonds due to its strong capital position, according to the news source.

"There is certainly investor money for the better names in banking," he said. "If you look at the issuance tables and you see who’s been able to issue, it’s everyone who doesn’t need to go to the LTRO," which is the European Central Bank's three-year lending program.

Reuters reports UBS has projected a potentially weak first quarter amid investment banking struggles and a restructuring that failed its goal of avoiding an earnings decline as a result of the euro zone debt crisis.

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