UBS posts profits down 36 per cent in 2001

Swiss bank UBS said today net profit in 2001 fell 36 per cent to 4.973 billion Swiss francs (€3

Swiss bank UBS said today net profit in 2001 fell 36 per cent to 4.973 billion Swiss francs (€3.36 billion) due to private-equity investment losses, acquisition costs and weak markets.

But the operating performance of the group's core businesses held up very well, said the biggest Swiss bank's chief executive, Mr Peter Wuffli.

UBS's full-year operating profit rose by 2 per cent to 37.114 billion francs, as the contribution of US private client bank PaineWebber, which UBS bought in 2000 for 11.8 billion dollars (€13.5 billion), compensated for the difficult market conditions, it said.

The bank's assets under management were nearly unchanged at the end of last year at 2.457 trillion Swiss francs.

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UBS said: "Markets remain difficult, as uncertainty and volatility continue to affect the confidence of private and institutional investors and levels of corporate activity".

The bank said cost control remained a key focus and further staff cuts could be necessary if markets continue to stagnate.

AFP