UBS, Legg Mason, Lazard and more

Reeling from its mortgage-related problems, UBS AG posted a net loss of 11.5 billion Swiss francs ($10.97 billion), or 5.63 ($5.35) Swiss francs per share, for the first quarter. The Zurich, Switzerland-based bank wrote down $19 billion (19.9 billion Swiss francs) in subprime mortgage securities and other investments in the quarter, bringing its total write-downs since the beginning of the credit crisis to about $38 billion. UBS also announced it would eliminate 5,500 jobs — with nearly half the cuts coming from its investment banking arm. In the year-ago period, UBS posted a net profit of 3 billion Swiss francs, or 1.43 Swiss francs per share. Legg Mason Inc. posted a loss of $255.5 million, or $1.81 per share, in its fiscal fourth quarter, which ended March 31. The Baltimore-based money manager attributed the loss, in part, to expenses related to shoring up funds hurt by subprime mortgage-related investments. Assets under management fell 2% in the quarter, to $950.1 billion, from $968.5 billion at the end of fiscal 2007. In the year-ago quarter, Legg Mason earned $172.5 million, or $1.19 per share. Lazard Ltd.’s first-quarter earnings fell 71%, to $16 million, after the company wrote down $28.5 million in portfolio losses. The New York-based investment bank earned $55 million in the first quarter of 2007. Lazard said its mergers and acquisitions and strategic advisory revenue was off 15%, to $166 million, from the year-ago period, while asset management revenue increased 15%, to $168.4 million. Assets under management increased 7.5%, to $134.2 billion. NYSE Euronext, the parent company of the New York Stock Exchange, said first quarter profit more than tripled on strong trading revenues and its purchase of Euronext NV. The New York-based exchange operator posted earnings of $230 million, or 87 cents per share, for the quarter ended March 31, up from $68 million, or 43 cents per share, a year earlier. Excluding expenses related to its merger and exit costs, the company earned $241 million, or 91 cents per share. NYSE Euronext said its European equities business rose 39%. The company also said it has authorized a buyback of up to $1 billion in shares, but cannot begin repurchasing stock while its deal to acquire the American Stock Exchange LLC awaits approval. That merger is set to close in the third quarter. Sun Life reported first-quarter net-income growth of 7%, despite pressures from the credit crunch and a weakening American dollar. The Toronto-based life insurer said it earned Canadian $533 million (US$528), or 93 Canadian cents per share. That compares with a profit of C$497 million, or 86 Canadian cents per share, a year ago. In the U.S., income from annuities fell 7%, to $75 million. Earnings at its Boston-based MFS Investment Management Inc. fell 18%, to $59 million, as assets under management fell 4%, to $184 billion. Wachovia Corp. today restated its first-quarter earnings, almost doubling its quarterly loss after the bank reviewed its portfolio of bank-owned life insurance. The Charlotte, N.C.-based bank said it lost $708 million, or 36 cents per share, during the first quarter, according to a filing with the Securities and Exchange Commission. The bank had previously reported losses of $393 million, or 20 cents per share, during the quarter.