55% quarterly profit slump for UBS

Swiss bank UBS AG has reported a 55% drop in first-quarter net profit for 2012 due to writedowns and difficult market conditions.

Switzerland’s biggest bank said today its first-quarter net profit was 827 million francs (€688m), down from 1.81 billion francs (€1.5bn) in the same period last year.

The results did not meet analysts’ average estimate for a net profit of 1.2 billion Swiss francs (€1bn).

But the results were an improvement from the last quarter of 2011, when the bank, a key engine of the Swiss economy, posted a net profit of 319 million francs (€265.5m).

Rival Credit Suisse reported a 95% drop in first-quarter net profit last week due to writedowns, staff severance costs, bonus payments and the strong Swiss franc.