Swiss bank UBS has reported a third-quarter net profit of SFr1.66 billion ($1.71 billion).
Tuesday's results beat analysts’ expectations for what had been predicted to be a weak quarter.
The Zurich-based bank, which posted a net loss of SFr564 million (then $542 million) in the same period of 2009, also said it saw a net inflow of deposits from wealthy customers during the third quarter for the first time in over two years.
Chief Executive Oswald Grübel said the bank had suffered similarly difficult market conditions as its competitors during the quarter, which was marked by low levels of client activity and a surge in the franc against both the dollar and the euro.
"We are optimistic that an uptick in the fourth quarter will benefit all of our business divisions," Grübel said in a statement. "We remain confident about our future and believe that we are on track to achieve our medium-term goals."
UBS booked a SFr825 million net tax credit during the third quarter, helping it beat consensus estimates among analysts for a net profit of just under SFr1.14 billion.
The bank also saw positive net new money flows – a key indicator of future business – reaching SFr1.2 billion during the quarter. UBS had been struggling for months to stem the flow of client withdrawals and recently launched a large marketing campaign to win back the confidence of Swiss clients.
UBS’s positive result contrasted with that of rival Credit Suisse, which last week reported that net profit had fallen in the third quarter to SFr609 million ($630 million), as slow equities trading ate into investment banking earnings.
This was a 74 per cent drop from the SFr2.35 billion net profit it reported in the same period of 2009 and far below analysts' expectations.
swissinfo and agencies