UBS said Tuesday that, despite a loss of $2.3 billion related to unauthorized trading and $433 million restructuring charge tied to cost cutting, it should report a modest net profit for the third quarter of 2011 on Oct. 25.
The profit expected by UBS (UBS) is a result of roughly $1.6 billion in credit gains on financial liabilities and a gain on the sale of Treasury-related investments of about $760 million in the non-U.S. wealth management and Swiss bank units, according to a press release.
In addition, UBS expects to report net new money inflows in its wealth-management businesses “at levels broadly similar to those of the previous quarter,” it said. Global asset management, however, should report moderate net new money outflows.
Globally, UBS includes 11,065 advisors, about half of which are in the United States.
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In the second quarter of 2011, UBS’ non-U.S. wealth management operations attracted $6.1 billion in net new assets. By region, the net inflows were roughly $3.4 billion in Asia, $3 billion in the emerging markets (including Latin America) and $1.6 billion in Switzerland. Outflows of $2 billion took place in Europe. And the group reported that $4.4 billion in net inflows came from ultra-high-net-worth clients.