UBS Underperforming Global Banks As Legal Liabilities Mount; Still Trades At Premium To Rivals - Bank of America (NYSE:BAC), Citigroup (NYSE:C)

UBS reported strong fourth quarter earnings on Feb. 6, with net profit of $1.2 billion (up 56% annually) and full-year profit of $7.8 billion. Revenues are rising but much of the headline “growth” came from significant net releases of litigation reserves, including a $668 million boost in the third quarter. What does that mean? If a company decides a legal case will not cost as much as they expected, the case was settled at a lower price, or their legal risks have diminished, they can release part of that l ...