GENEVA – UBS has reported a 71 per cent increase in third quarter profit as the banking giant took a big 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 1.30 billion mainly linked to an upward revaluation of deferred tax assets.
UBS forecast continued “headwinds” due to low interest rates, negative performance in some investments 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 rules to regulate big banks like UBS and Credit Suisse.