ZURICH, Nov 3 – Swiss banking giant UBS plunged into further losses of 564 million francs (373 million euros, 552 million dollars) for the third quarter, but said it expected its situation to improve in coming months.
"Having stabilized the bank’s financial condition and resized the business, UBS expects to see further progress in restoring the underlying profitability of the business in future quarters, particularly in 2010," said the bank in its quarterly earnings statement.
The Zurich-based bank, one of the biggest losers in the global financial crisis, has been struggling to recover.
While several other international banks have posted sharp profits for the quarter, UBS posted its fourth quarterly loss in a row on Tuesday.
The bank also failed to stem an outflow of funds, with customers withdrawing assets amounting to 36.7 billion francs over the three months ending September 30.
"The bank does not expect an immediate recovery in client net new money flows, and the impact of low interest rates on net interest income continues to hold back revenues, especially in Wealth Management and Swiss Bank," it said.
As for its investment bank unit, which has been blamed for much of the losses during the crisis, UBS said its fourth quarter results will reflect the "early stage of its recovery."