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Swiss bank


(UBS) - Get UBS Group AG Registered Report

reported third-quarter earnings of 296 million Swiss francs ($251.6 million) after booking a gain of 2.2 billion francs on its own credit and a tax credit of 913 million francs.

A year earlier, the bank reported a loss of 858 million francs.

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UBS said it saw net new money outflows of 83.6 billion francs in the quarter, compared with outflows of 43.8 billion francs the prior quarter, the bank said in a statement Tuesday.

UBS said its third quarter was impacted by realized and unrealized losses of $4.4 billion on legacy risk positions, mainly on exposure to U.S. residential real estate-related securities and other credit positions.

UBS said it expects that conditions seen at the beginning of fourth quarter "will continue to affect clients' assets, and therefore UBS's fee-earning businesses." Results in the fourth quarter also will be impacted by a possible reversal of credit gains and a loss on the equity in the fund to be controlled by the Swiss National Bank.

In mid-October, UBS and the Swiss National Bank reached an agreement for UBS to transfer up to $60 billion of currently illiquid securities and other assets from its balance sheet to a separate fund, and the bank would get a capital injection of 6 billion Swiss francs from the government in the form of mandatory convertible notes.

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