Switzerland's biggest bank UBS today posted a net profit of 296 million Swiss francs (€200m) for the third quarter, but warned that a loss was looming for the next quarter.
'UBS expects that the conditions seen at the beginning of the fourth quarter will continue to affect clients' assets, and therefore UBS' fee-earning business,' it said in a statement.
The bank, which was forced to seek help worth almost $60 billion from the state, said its fourth quarter results would also be impacted by the state's aid package.
This includes a loss to be realised due to a sale of its illiquid assets to the Swiss National Bank under the rescue package.
UBS Chief Financial Officer John Cryan said that based on current figures, the charge would be 'something like two billion francs'.
Cryan also said that the trend of assets withdrawn by clients from the bank was likely to continue, adding to challenging conditions in the coming months, although some improvement has been seen since the Swiss government stepped in.
