UBS eyes recovery after huge losses

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Swiss banking giant UBS has today reported first-quarter net profit of SwFr2.2 billion boosted by a strong performance in its investment banking division.

The earnings beat analysts forecasts of SwFr2.0 billion, according to a poll by economics newswire AWP.

UBS is among one of the worst hit victims of the credit crunch due to its exposure to the sub-prime mortgage crisis in the US and has announced substantial job losses as a result.

The bank, which is Switzerlanda��s largest, said the current quarter is expected to be “generally in line with the first quarter, although concerns relating to European sovereign debt provide a basis for some market uncertainty.”

The bank added that net money outflows reached SwFr18 billion in the first quarter, but this was far less than the SwFr56 billion last quarter as clients continued to take their assets elsewhere.

However, the bank said: “We believe the steps we have taken to deal with the root causes of the net outflows will be effective.”

Meanwhile, the bank is still in the midst of an investigation by US authorities involving alleged tax evasion by its clients.

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