Even as US banks are making record profits, the Big Two Swiss banks, UBS and
Credit Suisse, seem to be headed for more
Analysts expect net profit at UBS to drop by 3 percent to 3.4 billion Swiss
francs ($2.82 billion), and for Credit Suisse also to clock in 3 percent weaker
at 2.5 billion francs.
Before you rush to sell, however, remember what the dollar has done over that
time. At the beginning of April 2006, a Swiss franc was worth 76.9 cents. At
the beginning of April 2007, the same Swiss franc was worth 82.3 cents.
Let’s say that UBS profits fall from 3.5 billion Swiss francs in the first
quarter of 2006, to 3.4 billion Swiss francs in the first quarter of 2007. Converting
into dollars, that’s $2.69 billion a year ago, and $2.80 billion today. An increase
of 4%, as opposed to a decrease of 3%. So it all comes down to what currency