Switzerland's biggest bank, UBS, has posted a profit of 988 million francs ($1.054 billion) for the first quarter, down 4.5% from its result the same time last year.

The bank, based in Zurich, posted the decline from the 1.035 billion francs net profit in the first quarter of 2012.

But it was still a major turnaround from the 1.9 billion francs loss the bank posted for the fourth quarter of 2012 in the wake of a series of lawsuits, scandals and a wave of restructuring.

Chief executive Sergio Ermotti said in a statement today that "while it is too early to declare victory, we have shown our business model works in practice."

He said the bank's capital cushion rose to 10%, giving UBS "a competitive advantage."

He said the bank's capital cushion rose to 10%, giving UBS "a competitive advantage."