UBS posts Q4 loss of 1.9 bn Swiss francs
Switzerland’s biggest bank UBS AG has reported a fourth quarter net loss in 2012 of 1.9 billion francs ($2.08 billion) due to lawsuits and restructuring in the wake of a series of scandals. That compares with a net profit of 324 million francs in the fourth quarter of 2011 in the wake of a $2-billion rogue trading scandal. The Zurich-based bank attributed the fourth-quarter loss mainly to “net charges for provisions for litigation, regulatory and similar matters as well as net restructuring charges and an own credit loss”.
BP profit drops 80% in Q4 due to payouts
Oil and gas giant BP’s profit fell nearly 80% in the fourth quarter in results released on Tuesday, dragged down by payouts related to the Gulf of Mexico oil spill. BP said net profit fell to $1.62 billion in the quarter ending on December 31, down from $7.69 billion in the same period the year before. BP took a loss of $3.85 billion for its settlement of all federal criminal charges with the US government. Underlying replacement cost profit for the period, which strips out the changes in the value of inventories, was down 20% on the same period last year at $3.98 billion.
Sinopec to sell $3.1 bn in new stock
China Petroleum & Chemical Corp (Sinopec), Asia’s largest refiner, said it plans to raise about $3.1 billion in a share offering to fund its business development, sending its shares sharply lower as investors fretted about the volume of new stock in the market. Sinopec agreed to sell 2.85 billion new Hong Kong-traded shares at HK$8.45 each, a 9.5% discount to Monday’s close and 7.4% below the average closing price over the past 30 days, the company said in a filing to the Hong Kong stock exchange late on Monday.The stock fell as much as 7.1% in early trade on Tuesday to HK$8.68, but held above the placement price. Sinopec's Shanghai-traded shares were down 3.1%.
Barclays raises mis-selling costs by $1.6 bn
Barclays said on Tuesday it is putting aside another 1 billion pounds ($1.6 billion) to cover the costs of scandals related to the mis-selling of financial products, raising speculation that other British banks may soon have to cough up more cash to cover similar scandals. Barclays said more than half of that provision, or 600 million pounds, is to cover mis-sold payment protection insurance — usually abbreviated to