UBS records first losing year

ZURICH, Switzerland, Jan. 30 (UPI) -- The largest bank in Switzerland, UBS, recorded its first year of net losses in 2007 with fourth quarter write-offs of $11.4 billion, a bank statement said.

It is the first year of net losses for the bank, which began with a merger of Union Bank of Switzerland and Swiss Bank Corp. in 1998, The New York Times reported.

The bank expects a net loss of $4.4 billion for 2007, including $12 billion in losses related to subprime exposure in the United States, "and approximately $2 billion on other positions related to U.S. residential mortgage market," the report said.

Analysts predicted that the write-downs related to the mortgage crisis could eventually reach $800 billion, the report said. Since the housing market crisis began unfolding in 2007, banks worldwide have recorded losses of more than $135 billion.

UBS's statement said it attempted to shore up its capital base during the last quarter, achieving a Tier 1 capital ratio of 8.8 percent as of Dec. 31.

UBS is to release more financial details on Feb. 14.