UBS reports $1.65bn profit for third quarter

27 October 2010

UBS has reported third-quarter profits of CHF1.66 billion ($1.65 billion), with its figures being improved by a CHF825 million tax credit during the three-month period.

The Swiss bank said its performance had been affected by low levels of client activity, which it responded to by reducing costs as much as possible.

Oswald Gruebel, group chief executive officer of UBS, said that a strengthening of the Swiss franc against other major currencies also had an impact on business results.

"However, we are optimistic that an uptick in the fourth quarter will benefit all of our business divisions," he added.

"We remain confident about our future."

The results are stronger than the ones recorded during the same period at rival Credit Suisse, which made a profit of CHF609 million.

This was 74 per cent down on the income it made during the third quarter of 2009 - which the financial institution blamed on subdued client activity.

By Asim Shah

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