Troubled UBS reports slight profit increase despite financial fiasco

UBS said yesterday it would make a small profit in the third quarter after a year of losses, signalling it had started to turn the corner even as the credit crisis still engulfs many US and European peers.

The world's biggest banker to the rich, which has made more writedowns than any other bank in Europe in the past year due to its large exposure to US toxic assets and has slashed jobs, said it had substantially reduced its US commercial and residential mortgage-related holdings, mainly through disposals.

"I am happy to report UBS has fared reasonably well through this turmoil of the last weeks," Chairman Peter Kurer said in the text of a speech to an extraordinary shareholder meeting later yesterday which was released in advance.