Swiss banking giant UBS AG swung into black with profit of 1.2 billion swiss francs in the fourth quarter of 2009 riding on lower costs and sizeable tax credit.
The bank has posted profit in more than a year in the quarter ended December 2009, while it had suffered a loss of 564 million swiss francs in the third quarter last year, a UBS statement said.
"The improvement compared with third quarter is due to lower costs, lower own credit charges and a tax credit," it added.
The fourth quarter results include tax credit of 480 million swiss francs.
"We entered 2009 at the height of the crisis. By the end of 2009 UBS has returned to profitability, delivering on its priorities. We have taken decisive action to transform UBS, and it is now a focused, efficient and resilient firm," UBS Group CEO Oswald J Grubel said.
We expect that the return to profitability will increase clients' confidence in UBS and restore our reputation, Grubel added.
For the entire 2009, UBS posted a net loss of 2.73 billion swiss francs, a drop from 21.2 billion swiss francs in 2008.
In the coming quarters, UBS is confident of the effectiveness of the measures it is taking to address causes of client asset outflows, but in the immediate future expects to report outflows with some pressure on margins, it said.
