* Q2 earnings expected Tuesday at 0445 GMT
* UBS under scrutiny over its part in Libor scandal
* Analysts expect Q2 net profit of 1.141 bln Swiss francs
By Katharina Bart
ZURICH, July 31 Swiss bank UBS UBSN.VX will be
scrutinised on Tuesday for what it says about Libor interest
rate manipulation, overshadowing an expected increase in
Swiss regulator FINMA said on Monday it is questioning UBS
and Credit Suisse CSGN.VX in an investigation over possible
Libor interest rate rigging.
"We are actively going after information that will enable us
to make a judgment on what has happened," a FINMA spokesman told
Reuters on Monday.
The two banks are not under formal investigation as Swiss
banks are legally obliged to cooperate with FINMA, which
regulates the country's banks.
Several European banks which are under investigation for
suspected rigging of euro interest rates are cooperating with EU
antitrust regulators in the hope of lower fines, two people
familiar with the matter said on Monday, a move which puts the
lenders at a higher risk of lawsuits. [ID:nL6E8IU92P]
UBS was the first bank to say in March it had been
subpoenaed in the probe, and later secured leniency from some
justice authorities in return for cooperating with probes into
the setting of yen and euroyen Libor.
New details from court documents and sources close to the
Libor scandal investigation suggest that groups of traders
working at three major European banks, including UBS, were
heavily involved in rigging the rates. [ID:nL2E8IS0ID]
Analysts have estimated that the scandal could cost the
industry between $20 billion to $40 billion, further damaging a
sector that is struggling to work its way through the aftermath
of the 2007-2009 financial crisis, economic downturns in Europe
and the United States, and increased regulatory demands.
Analysts polled by Reuters expect UBS to post a
second-quarter profit of 1.141 billion Swiss francs ($1.16
billion), up from 1.0 billion francs a year ago, helped in part
by gains on the bank's own debt.
Banks can record gains if the value of their debt falls,
since it becomes theoretically cheaper to repurchase it, and
conversely book losses if the value of the debt rises.
UBS is expected to post 5 billion francs in net new private
banking money according to the average analyst estimate, a
healthy reading which underpins future revenue.
($1=0.9811 Swiss francs)
(Editing by David Cowell)
((Katharina.Bart@thomsonreuters.com)(+41 58 306 7312 Reuters
Keywords: UBS EARNINGS/
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