UBS expects slight Q3 profit

4 October 2011

The largest bank in Switzerland is expecting to see a modest rise in profits for the third quarter of 2011.

UBS AG, which came to be in its current guise following a merger between Swiss Bank Corporation and Union Bank of Switzerland in 1998, predicted a slight upturn in net income for the three-month period as bond sales and credit spreads have helped to counter somewhat the $2.3 billion loss incurred from the much-publicized unauthorized trading scandal, Bloomberg reports.

The lender explained it is likely to experience a fair-value gain in the region of 1.5 billion Swiss francs ($1.6 billion) for the spell, while a profit from the sale of UK gilts and US Treasuries contained in the wealth-management and Swiss bank division - which amounted to 700 million Swiss franks - also contributed.

Dirk Becker, an analyst at Kepler Capital Markets, however, described the third-quarter revenues at the institute as disappointing, adding: "The news of third-quarter profit is not as positive as it may appear at first glance because the gains UBS booked have nothing to do with normal business."

By Gary Cooper

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