Updated from 12:47 a.m. ST
ZURICH, Switzerland (
, Switzerland's second biggest bank, swung to a profit in the fourth quarter of 1.2 billion Swiss francs ($1.13 billion), topping analysts' estimates, and said it continues efforts to stem client asset outflows.
In the fourth quarter a year earlier, the bank posted a loss of 9.56 billion francs.
UBS, in a statement Tuesday, attributed the fourth-quarter profit, its first quarterly profit in a year, to lower costs, lower own credit charges and a tax credit. Also helping was a pretax profit rise of 40% to 1.11 billion francs at UBS' Wealth Management & Swiss Bank unit.
UBS said it expects performance in 2010 at its investment bank "as a whole will improve, in part because its residual risk positions should have a much reduced impact on results."
UBS said net new money outflows in the fourth quarter were 56.2 billion francs. Outflows were 33.2 billion francs for its Wealth Management & Swiss Bank division alone.
UBS said "addressing the causes of net new money outflows remains a main priority," but it still expects to report outflows in the immediate future, with some pressure on margins.
UBS shares were trading lower by about 2% overseas.
-- Reported by Joseph Woelfel in New York.
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