SWISS BANK UBS expects to report a “modest” net profit for the third quarter of the year despite the €1.7 billion loss it suffered in last month’s rogue trading incident.
The company announced today that it will report a net profit on October 25 because of positive new money in its wealth management business and credit gains on financial liabilities.
The Swiss bank projects net new money inflows in its wealth management businesses will be at levels broadly similar to those of the previous quarter, when it noted client inflows of 5.6 billion Swiss francs (€4.7 billion).
UBS said it will also report a gain on the sale of treasury-related investments of about 0.7 billion Swiss francs (€0.6 billion).
In the trading update, the bank said it capital position remains strong and the previously announced cost-reduction programme is still on track.
According to Reuters, chief financial officer Tom Naratil said the trading scandal had not resulted in too many clients withdrawing their money.
He remains confident on the firm’s performance after reversing the expectations of a third quarter loss.
No further updates are expected from UBS until it reveals official third quarter results on October 25.
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