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UBS reports profit despite trading scandal | UBS reports profit despite trading scandal |
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Swiss bank UBS has reported a better-than-expected third-quarter net profit of 1bn Swiss francs ($1.1bn; £710m) | Swiss bank UBS has reported a better-than-expected third-quarter net profit of 1bn Swiss francs ($1.1bn; £710m) |
This was despite being hit by a 1.8bn franc loss from deals made by alleged rogue trader Kweku Adoboli. | This was despite being hit by a 1.8bn franc loss from deals made by alleged rogue trader Kweku Adoboli. |
When the deals were uncovered in London last month, UBS warned that it might have to report a loss for the quarter. | When the deals were uncovered in London last month, UBS warned that it might have to report a loss for the quarter. |
UBS said controls on certain trades had not been working properly and checks to ensure that internal transactions were recorded accurately had failed. | |
The Swiss banking group said it had been hit by unauthorised trading on 15 September, shortly after Mr Adoboli was arrested in London. | |
UBS said: "We have taken and are taking measures to address these control deficiencies." The bank said investigations were continuing. | |
Mr Adoboli will appear in court in London next month. He faces two charges of fraud and two of false accounting over a three-year period at the bank. He has yet to enter a plea against the charges. | |
The latest UBS profit figure was lower than the 1.66bn franc profit reported in the same quarter a year ago, but identical to the 1bn franc profit it reported last quarter. | |
Although the bank acknowledged that the current economic climate could be turbulent, interim chief executive Sergio Ermotti said the outlook for UBS clients and shareholders was "unquestionably solid". | Although the bank acknowledged that the current economic climate could be turbulent, interim chief executive Sergio Ermotti said the outlook for UBS clients and shareholders was "unquestionably solid". |
However, UBS chief financial officer, Tom Naratil would not comment when asked if there were any plans for further job cuts. |