Swiss bank UBS: 3Q net jumps 71 percent behind tax benefit
GENEVA: UBS has reported a 71-percent increase in third-quarter net profit as the banking giant took a huge tax benefit, while predicting "substantial" future costs from new Swiss regulations aimed at bucking up the country's two biggest financial institutions.
The Zurich-based company said net profit rose to 2.07 billion Swiss francs ($2.1 billion) from 1.32 billion francs a year earlier. It recorded a net tax benefit of 1.295 billion mainly linked to an upward revaluation of deferred tax assets.
UBS forecast continued "headwinds" due to low interest rates, negative performance in some asset classes and a slumping euro versus the Swiss franc. It predicted further tax benefits in the fourth quarter
The bank projected substantial costs related to new Swiss "too big to fail" rules faced by UBS and Credit Suisse.