Banking giant UBS today plunged to an annual loss of 4.38 billion Swiss francs (€2.7bn) after huge write-downs linked to the US sub-prime mortgage crisis.

UBS, Europe’s largest bank by assets, has reported record fourth-quarter profit, after a gain from the sale of four money-management units, and said it may make acquisitions to win more wealthy clients in the US.

The world’s sixth biggest bank, UBS, today said it had doubled first quarter net profits, but warned that good market conditions were unlikely to continue through 2004.

The world’s biggest asset manager, UBS, has posted its best quarterly earnings in three years.