First quarter profit down at UBS

Swiss bank UBS has reported a fall in first quarter profits, with its results affected by the strong value of the Swiss franc.

It reported a net profit of 1.8bn Swiss francs ($2.04bn; £1.2bn), down 18% from the same quarter in 2010.

“We’ll continue to see that [currency] effect for some time,” John Cryan, the bank’s chief financial officer, told reporters.

However, the bank pointed to higher income from its wealth management unit.

“I am satisfied with our result considering market activity during the first quarter, and I am particularly pleased by the increase in net new money, confirming the return of client trust and confidence,” said chief executive Oswald Grübel in a statement.

USB warned that it would also face higher costs in the second half of the year as it attempted to retain staff in the face of competition from rival banks.