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Customers pull their money out of ailing UBS

Switzerland's largest bank, UBS, has reported record outflows in the third quarter as clients seek security in other financial institutions.

However, the bank said it had made a profit of SFr296 million ($251.4 million) in the period, helped by its own credit and tax gains.

UBS said outflows from its core wealth management business totalled a record SFr49.3 billion and a further SFr34.4 billion was taken out of its Global Asset Management business.

Massive exposure to risky United States assets has forced UBS to make nearly $49 billion in writedowns, more than any other European bank, prompting the Swiss state to take a stake in October and the central bank to set up a fund to absorb its most illiquid assets.

UBS shares have fallen more than 60 per cent since the beginning of the year.

Rival Credit Suisse reported a loss of SFr1.3 billion in the third quarter after large trading losses. Its shares have lost a more moderate 36 per cent this year and the bank has declined state help.

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SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR