UBS reports Q3 profit, says global challenges unlikely to be resolved in near future

In a statement accompanying a third quarter net profit, Swiss bank UBS warned that many global economic challenges remain unlikely to be resolved for the foreseeable future.

The lender reported a third quarter net profit of 2.1 billion Swiss francs ($2.12 billion). The figure was significantly up on the same period last year – 762 million Swiss francs – thanks to a 1.3 billion Swiss franc net tax benefit. Third-quarter figure in 2014 was also hit by a massive foreign exchange charge. 

Group chief executive Sergio Ermotti noted in a statement he was pleased with the quarter's results:

"We stayed close to our clients in a very challenging environment. Disciplined execution and our diversified business model allowed us to deliver strong returns for our shareholders while continuing to invest in our future," he added.

The bank warned in the statement that many of the "underlying macroeconomic challenges and geopolitical issues that we have highlighted in previous quarters remain and are unlikely to be resolved in the foreseeable future."

"In addition, recently proposed changes to the too-big-to-fail regulatory framework in Switzerland will cause substantial ongoing interest costs for the firm."

The lender said it had received inquiries from authorities concerning accounts related to the world's governing body for soccer, FIFA, along with other sport organizations and persons, and that UBS was co-operating with the investigations.

It also said that the former chief executive of UBS Wealth Management, Raoul Weil, was placed under formal examination related to proceedings in France.