UBS continued the strong run of rising first-quarter profits at Europe's leading banks with its best-ever quarterly result.

However, analysts noted that, while the group again impressed with its ability to attract new money to its powerhouse private banking operation, investment banking was overshadowed by the results of peers such as Deutsche Bank and Credit Suisse.

Net group profits after minority interests climbed by 33 per cent to SFr3.50 billion (€2.24 billion) year on year.

However, the bottom line figure was flattered by a SFr290 million one-off gain from the sale of Motor Columbus, a Swiss electricity generator.

On the bank's preferred measure of attributable net profits from continuing operations, earnings increased by 29 per cent to SFr3.19 billion.

UBS, one of the world's most profitable banks, remained upbeat for the full year, based on buoyant markets and strong deal flows.

"We remain confident in the outlook for UBS, even if conditions change," said Clive Standish, chief financial officer.

Net new money in wealth management rose by SFr33.6 billion - more than the total assets managed by many Swiss private banks in the quarter, with gains balanced around the world.

Mr Standish revealed the bank's growing network of branches in neighbouring European countries had made its first profit, although he declined to disclose the amount.