In Brief: UBS Looking to Sell Trade Finance Business

Switzerland's UBS AG may sell off its trade finance operations.

UBS said it is "exploring a range of alternatives for its global trade finance business." The bank said its explorations are "still at an early stage," and that no decision has been taken yet.

The global trade finance unit operates worldwide from offices in London, New York, Zurich, and Hong Kong, and deals with large, medium, and small corporations.

A spokeswoman for the bank in Stamford declined to comment on published reports that the unit has been put up for sale after UBS decided to focus on investment banking. The reports said the UBS unit has around $5.5 billion in short-term trade loans outstanding, including large amounts in trade loans to emerging-market borrowers.

Over the last several years, banks handling trade finance have been obliged to pump large investments into technology, triggering an ongoing consolidation in the business. But UBS, one of the world's largest banks, has also been seeking to cut costs and boost profits after it racked up large losses this year on derivatives transactions, emerging-market trading, and investments in hedge funds.