UBS Tumbles On "Very Poor" Results As Clients Pull $13 Billion

he parade of weak bank earnings continued on Tuesday when UBS, one of the first major European banks to report, announced that it had missed analysts' profit estimates (though it did record a rise in full-year profits) due to outflows from its key global wealth management division.

Here's a summary of its earnings report courtesy of Bloomberg:

UBS reports $7.9b in net new money outflows in global wealth management in 4Q, while asset management business saw outflows of $4.9b.

UBS says seen some normalization in markets in early 2019

Expects 1Q client activity affected by volatility, geopolitics, trade disputes

Market volatility remains muted, which is less conducive to client activity

2018 dividend CHF0.70/shr

Targets to buy back $1b worth of shares in 2019 vs CHF750m in 2018

4Q adj. pretax profit (excl. litigation costs) $1.01b vs company- compiled est. $1.04b

Global wealth management adj. pretax $912m vs est. $943m

Investment bank adj. pretax $30m vs est. $229m

Challenging markets affected equities, corporate client solutions revenues

4Q adj. cost/income ratio 97%

Personal & corporate banking adj. pretax $375m vs est. $397m

Asset management adj. pretax $134m vs est. $119m

Investment bank adj. pre-tax profit $30 million vs $229 million company compiled est.

4Q net $696m vs est. $729m

End-Dec. CET1 capital ratio 13.1%; CET1 leverage ratio 3.8%

The bank's net profit attributable to shareholders for 2018 was $4.897 billion, compared with $969 million in 2017. That's compared with a Reuters estimate of $4.906 billion. The bank warned about further weakness in its wealth management unit as it expects investors will continue to pull money out due to rising protectionism, increased market volatility and geopolitical tensions. Withdrawals at the bank's global wealth management unit totaled almost $8 billion in Q4, while another $5 billion flowed out of it asset-management business.

UBS shares (-4.7%) led a drop in European bank shares…

…after its earnings report, which Citigroup analysts described as "very poor."

"These are very poor results, and come as somewhat of a negative surprise so soon after the upbeat investor day," analysts including Andrew Coombs at Citigroup wrote in a note to investors. In wealth management "the fourth quarter is usually seasonally weak, but this is disappointing."

UBS CEO Sergio Ermotti, who is expected to face questions on succession planning on Tuesday, said the "normalization" in markets in early 2019 could benefit the bank's bottom line for Q1.

"We have seen sine normalization in markets early in 2019, we will stay focused on balancing efficiency and investments for growth, in order to keep delivering our capital return objectives while creating sustainable long-term value for shareholders," Sergio Ermotti, UBS chief executive officer, said in a statement Tuesday.

In an attempt to boost its sagging share price, the bank also announced its plans to purchase $1 billion of its shares in 2019, above the $751 million purchased in 2018.

_______

Even shitibank comes out and criticizes it so they are eating themselves as usual when the writing is on the wall. Also of note a share buyback of $1b against the $751m done last FY.

The blind leading the blind here.

Pre-Market trade:

12.94 -0.67 (-4.92%)

Pre-Market: 8:04AM EST

https://www.zerohedge.com/news/2019-01-22/ubs-tumbles-very-poor-results-clients-pull-13-billion

Tesla's Customer Service E-Mail Address Implodes, Returning "Mailbox Full" Errors

For Tesla, production hell wound up turning into delivery hell. And now delivery hell may very well be turning into customer service hell.

After Friday’s announcement that the company would be laying off 7% of its staff and cutting its guidance, skeptics started to ask the question of how the company was going to continue to run its business with what already felt like a bare bones staff.

Current owners are about to experience what it’s like to have zero customer support. All $TSLA cost centers are in service/repair, the opposite of every other auto co., because of terrible initial product quality. https://t.co/1JJaYGDkRi

— Paul Huettner, CFA (@Paul_M_Huettner) January 18, 2019

I suppose with thousands fewer employees the $TSLA customer service and post-sales experience will be that much better.

— Keubiko (@Keubiko) January 18, 2019

How will staff cuts affect $TSLA owners who have had their cars in service for months? How will it affect the quality of cars being produced? Who has to pick up the extra hours now? How far can you bend employees/customers before they break? The self-fulfilling spiral continues.

— Quoth the Raven (@QTRResearch) January 18, 2019

There appears to have been a deluge of complaints on social media and owner forums, not only about the quality of vehicles, but also about the time with which it takes to get them serviced. Some Tesla owners claim to be experiencing significant delays in waiting for their vehicles to get serviced, sometimes waiting weeks or months before getting their vehicles back.

And now it looks as though the customer service at Tesla may be getting even slower.

Social media sleuths over the weekend began to point out that Tesla's customer service email inbox appeared to no longer be accepting e-mails. According to several Twitter users, inquiries e-mailed to customersupport@tesla.com, which is listed on the company's website as its main customer service e-mail, were bouncing back to senders.

As a reminder, the response time for Tesla service has been an ongoing complaint on social media since the company began to spread out "mass market" Model 3 inventory across the nation.

For now, it looks as though the problem may have been rectified. Late in the day on Sunday, when we tried to send an email to the same address, we got no immediate response.

But again, these kinds of bush league screw ups have to leave investors (and especially Tesla owners) asking the question of how much more the company can sacrifice from its workforce before efficiency takes a brutal hit. Not only that, but now that the rank-and-file employees are likely being stretched even more to work as much as humanly possible, how much longer can they last as believers?

And if you want to argue that Tesla is a technology company and not a car company, why not start with getting the basics of E-Mail 101 down first.

https://www.zerohedge.com/news/2019-01-22/teslas-customer-service-e-mail-address-implodes-returning-mailbox-full-errors

It's A "Sea Of Red" As Global Stocks, S&P Futures Tumble

Monday's selloff, which spared the US cash market which was closed for MLK day, has stretched for a second day, with US traders walking in to a sea of red in Asian and European markets, while S&P futures are down over 20 points following a pessimistic economic assessment by the IMF, renewed trade concerns after the US submitted a formal request to extradite the Huawei CFO from China and "very poor" results from UBS.

After stocks rallied to the strongest start of the year since 1938, investors now find their conviction tested anew as a familiar litany of concerns weigh on sentiment. Adding to the sense of gloom, on Monday in its World Economic Outlook report, the IMF downgraded the global economy for the second time in three months when it predicted the global economy would grow at 3.5% in 2019 and 3.6% in 2020, down 0.2 and 0.1 percentage point respectively from last October’s forecasts.

In the latest confirmation that Europe's economy is on the verge of a recession, today's German ZEW Current Situation report printed at 27.6, a huge miss to the 43.0 exp. and the lowest in 4 years.

While there might have been an element of the lull before the storm in markets yesterday with a packed rest of the week calendar ahead of us, if you did have to point the finger then the ever so slight risk-off tone could be attributed to comments made by China President Xi Jinping at a seminar of provincial leaders and ministers in Beijing. He said that “the (Communist) Party is facing long-term and complex tests in terms of maintaining long-term rule, reform and opening-up, a market-driven economy, and within the external environment”. The President also said that “the party is facing sharp and serious dangers of a slackness in spirit, lack of ability, distance from the people, and being passive and corrupt”. To counter all this Xi signalled that China will maintain economic operations “within a reasonable range”. This all appeared largely consistent with previous comments but adds to the slew of slowdown concerns coming from China now. On that note, post yesterday’s data, our Chinese economists reiterated their forecasts for GDP growth to fall to as low as 5.9% in Q2 before rebounding post policy loosening in March. See their report here.

Elsewhere, the IMF’s latest global growth forecasts were released yesterday. The Fund now expects 2019 growth to be 3.5% which compares to the 3.7% forecast made in October. That would also mark the slowest rate of growth in three years while the 2020 forecast now is for 3.6%, a small downward revision of one-tenth. At a regional level the forecast for emerging markets was revised down two-tenths this year to 4.5% while advanced economies are expected to grow 2.0% (one-tenth downward revision). The US is expected to grow 2.5% and 1.8% this year and next (both unrevised) which is broadly in line with the consensus on Bloomberg.

Finally, as for the day ahead, it’s a busy morning for data here in the UK with November and December employment stats due out (no change in the 4.1% unemployment rate or 3.3% yoy average weekly earnings prints expected) and December public sector net borrowing data. Also due out is the January ZEW survey in Germany. This afternoon in the US the lone release is December existing home sales which is expected to show a small decrease (-1.5% mom) during the month. Elsewhere the annual Davos shindig kicks off today while the earnings highlights include Johnson & Johnson and IBM in the US, and UBS in Europe.

____

China's trillion dollar print-fest is over according to it's equity market performance.

The UBS earnings tell a big issue going forward..client redemptions. Look for this to start to be limited. They eat themselves when it gets tough for them.

on a side note krassentwats came in last night with the penny stock crap again and the usual let's beat up on the marketanon.. Expect them to do the same when the hookers and blow wear off.

https://www.zerohedge.com/news/2019-01-22/its-sea-red-global-stocks-sp-futures-tumble

>>4859667

kek

>>4859376 peace for you and yours sa