UBS Group AG incurred a loss of $861 million from the Archegos Capital Management collapse, according to Bloomberg. The bank said it will improve on risk management including strengthening transparency from clients to avert similar losses in the future.
UBS now joins a list of other banks including Morgan Stanley which have reported losses from the Archegos implosion.
Archegos loss disclosure came at the back of a better-than-expected profit, driven by strong performance in the wealth management segment.
CEO Ralph Hamers defended UBS’s relations with hedge funds as “strategic” and said the bank has no plans to cut back lending like rival Credit Suisse.
UBS Plunged 4% in Zurich trading on revelation of Archegos impact, despite the bank having considered the loss not material enough to disclose earlier.
UBS stock is currently declining. UBSG: SWX is down 3.12%
