10 Feb 2010

UBS back in profit

6:23 am on 10 February 2010

UBS has reported its first quarterly profit for more than a year, due to lower costs and a large tax credit.

The Swiss bank made a pre-tax profit of 1.2 billion Swiss francs ($US1.1 billion) in the three months to 31 December.

This compares with a loss of 9.58 billion francs in the same period in 2008.

The turnaround in the final three months of the year helped the bank to cut its annual net loss to 2.7 billion Swiss francs last year.

The bank's profit in the final quarter of 2009 was partly due to a tax credit worth 480 million francs.

In a letter to shareholders, chief executive Oswald Gruebel said he was confident that the bank's positive performance would continue.

However, the BBC reports the bank still suffered from outflows in the final three months of 2009, as clients took out 56.2 billion francs. More

withdrawals were expected "in the immediate future".