UBS third quarter profits down by 21%

31 October 2006

Zurich-based UBS has announced a fall in net profits for the third quarter of 2006, falling significantly short of analysts' estimates.

Profits for the quarter were reported at 2.2 billion Swiss francs ($1.76 billion), down by 21 per cent compared with the same period 12 months ago.

Profits were also down compared with earlier this year, as UBS's chief financial officer Clive Standish admitted.

"We felt the effects of the May and June market correction in the first part of this quarter as sentiment did not really improve until September," he said.

"Which is why we were not able to match the very strong performance in the first half."

However, UBS said that it still expected 2006 to be a successful year overall, with record profits expected.

"At this point, it looks as though we will remember 2006 as another record year for UBS – in terms of both financial results and strategic progress," Mr Standish added.

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