Swiss bank UBS swings into third quarter profit
Swiss bank UBS on Tuesday posted a third quarter net profit of 1.66 billion Swiss francs, exceeding analysts' forecasts as it restored client cashflow for the first time since the financial crisis.
The net profit attributable to shareholders, equivalent to 1.71 billion dollars or 1.22 billion euros, compared with a 564 million franc loss during the same period last year.
Net new money reached 1.2 billion Swiss francs in the third quarter of 2010, marking a turnaround from a trend of withdrawals by fearful clients.
Nonetheless, UBS said in a statement that its investment banking business suffered from reduced flows in equities while wealth management revenues also decreased.
"The third quarter was unusual in that there were very low levels of client activity as well as a strengthening of the Swiss franc against most major currencies," said chief executive Oswald Gruebel.
"However, we are optimistic that an uptick in the fourth quarter will benefit all of our business divisions. We remain confident about our future and believe that we are on track to achieve our medium-term goals," he added".
The bank, which was one of the hardest hit in the financial crisis, is counting on its profits to shore up its capital foundations and meet tougher international banking regulations over the coming decade.
Analysts had forecast third quarter net profit of around 1.1 billion francs.
UBS also beat analysts' expectations during the previous quarter with net profit of 2.0 billion Swiss francs.
© 2010 AFP