ZURICH (Reuters) - UBS (UBSG.S) has seen subdued levels of trading volatility from the first half of 2017 continue into the third quarter, Chief Financial Officer Kirt Gardner said on Thursday, echoing comments by Wall Street banks.
“Low volatility levels across major asset classes have been a particular challenge this year,” Gardner said in a presentation at a banking conference. “In the second quarter, this affected client activity in our investor client services business and the trend has persisted into the third quarter, consistent with what you have heard from other investment banks.”
Executives from JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N) and Goldman Sachs Group Inc (GS.N) warned this month that trading conditions during the third quarter were likely to be poor for their banks.
“Given our focus model in FRC (foreign exchange, interest rates and credit) which is more weighted to the institutional side with around 60 percent of our revenue in FX, low volatility is especially challenging for us,” Gardner said.
Reporting by Joshua Franklin; Editing by Michael Shields