Zurich-based UBS flagged a number of risks in Asia, including US-China trade relations as well as issues related to Credit Suisse.
UBS flagged a variety of risks globally which it continued to monitor and respond accordingly. Within Asia, it highlighted uncertainty in US-China trade relations as well as overall growth concerns.
«The potential for 'higher-for-longer' interest rates raises the prospect of a global recession, particularly as the growth of China’s economy has been muted. This combination of factors translates into a more uncertain and volatile environment, which increases the risk of financial market disruptions,» the bank said in its earnings report for the third quarter.
«In 2023, several emerging markets have faced economic, political and market pressures, particularly in light of interest rate hikes and a stronger US dollar. Our exposure to emerging market countries is less than 10 percent of our total country exposure, mainly in Asia.»
CS Issues
Aside from external risks, the bank also noted internal worries, including legal proceedings at Credit Suisse. Staying in the region, the bank noted the civil lawsuit brought against Credit Suisse Trust in Singapore and the appeal against a court ruling to pay nearly $743 million in damages to ex-Georgia Prime Minister Bidzina Ivanishvili for failing the duty to safeguard assets.
The Archegos case was also cited as multiple governmental agencies, including the Hong Kong Competition Commission, have sent requests for documents and information to Credit Suisse for related inquiries, investigations and actions.
«it was a challenging quarter with high uncertainty, further deterioration of the geopolitical landscape and rapidly changing economic forecasts,» said UBS CEO Sergio Ermotti in a video statement.
