UBS AG said that it expects to have a modest net profit in its third quarter, while its wealth management unit should have positive net new money in its upcoming third quarter results.
UBS’s revised estimate Tuesday marks a reversal from a previous announcement in September that a $2.3 billion loss resulting from an unauthorized rogue trading incident could also lead to a loss for the third quarter.
UBS is scheduled to release its third quarter results on Oct. 25.
“UBS’s capital position remains strong and its capital base at the end of the third quarter of 2011 is expected to remain broadly in line with the balance at the end of the previous quarter, including the loss associated with the unauthorized trading incident,” UBS’s statement said.
UBS’s expected profits also take into consideration about CHF0.4 billion ($433.24 million) in restructuring costs as a result of new strategies for cost reduction, the firm said Tuesday.
The Swiss bank also expects that wealth management will have net new money inflows similar to the second quarter. That comes as the firm plans to report a gain of about CHF0.7 billion ($758.24 million) for the sale of investments tied to Treasuries, which affects both the wealth management and Swiss banking businesses.
Global asset management will have moderate net new money outflows for the third quarter.
The majority of employees that will be included in its layoffs have been notified, while reductions will continue into 2012, UBS also said Tuesday. UBS announced in August that it planned to shed 3,500 positions, which could affect some positions in its U.S. wealth management business excluding U.S.-based financial advisors.