BASEL, Switzerland ( TheStreet) -- Swiss bank UBS said third-quarter profit fell 39%, largely because of a rogue trading loss the bank incurred last month.

Profit of 1.02 billion Swiss francs ($1.16 billion) was lower than last year's 1.66 billion francs, but came in better than analysts had expected. Third-quarter profit included one-off gains of 550 million francs.

UBS said the fall in profit was "mainly due" to the 1.8 billion francs lost in the rogue trading scandal.

UBS warned of tough times ahead.

"Current market conditions and trading activity are unlikely to improve materially, potentially creating headwinds for growth in revenues and net new money," UBS said Tuesday. " But the bank said through cost-cutting and scaling back on its investment banking "we have every reason to remain confident about our future."

-- Written by Joseph Woelfel

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