UBS first-quarter profit drops 52% due to legacy litigation case

UBS Group AG (UBSG.S) on Tuesday reported a 52% slide in profit for the first quarter due to an increase in legal provisions for a legacy litigation matter.

The result comes at a tumultuous time for the Swiss bank after it was forced into taking over former rival Credit Suisse (CSGN.S).

Net profit attributable to shareholders came in at $1.03 billion versus the $1.71 billion average of 15 analyst estimates in a UBS-conducted poll.

UBS said it increased provisions relating to U.S. residential mortgage-backed securities litigation by $665 million.

“We are in advanced discussions with the US Department of Justice, and I am pleased that we are making progress toward resolving the legacy matter which dates back 15 years,” Chief Executive Sergio Ermotti, who has newly rejoined the bank to steer the takeover, said in a statement.

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