ADRs in Focus: European Banks

U.S. shares of European banks fell Friday, with UBS AG sliding to a three-year low as concerns about UBS' subprime mortgage exposure pressured the stock.

On Thursday, the bank reported a loss of 12.45 billion Swiss francs, or $11.28 billion, in the fourth quarter, and analysts said UBS may eventually have to write-down $80 billion or more to cover its exposure to U.S. subprime mortgage assets.

The stock fell 80 cents, or 2.4 percent, to $33.13 afternoon trading, and reached a low of $32.85. UBS trades in the form of ADRs, or American Depositary Receipts, which are securities that allow U.S. investors to trade shares of companies based overseas.

Elsewhere in the sector, shares of Britain's Lloyds TSB Group PLC slid 59 cents, or 2.2 percent, to $31.42, while fellow British bank Barclays Group PLC lost 53 cents to $34.12, and shares of London's HSBC Holdings PLC gave up 82 cents to $72.78.

Stock in Spanish Banco Bilbao Vizcaya Argentaria shed 15 cents to $19.90. A second Spanish bank, Banco Santander SA, fell 7 cents to $17.25.

Shares of Credit Suisse Group bucked the trend, gaining 8 cents to $50.88.

The Bank of New York Europe ADR index, an index of European stocks traded on U.S. exchanges, dipped 0.62 points to 166.58. The Bank of New York Composite ADR Index lost 0.12 points to 170.34 as the U.S. markets were mixed in afternoon trading.