UBS signals end of bear market

BANKING giant UBS declared a definite end of the bear market today as it reported third quarter profits of more than a billion dollars - its third straight quarterly gain and further proof of the upturn in Europe's troubled banking sector.

The London-based former UBS Warburg business, fuelled the black ink thanks to a rebound in stock market fortunes and demand for wealth management. Net income rose 78% to $1.22bn.

Chief executive Peter Wuffli said the bear market was now 'obviously over' and said there would be no more job losses at its investment banking arm, though there will be some cutbacks in its retail banking arm in its Swiss home market. It employs 70,000 staff worldwide.

In investment banking, UBS underwrote equities and convertible bonds worth $5.64bn in the third quarter, up from $3.81bn a year earlier. The firm is ranked sixth among global stock underwriters, down from fourth in the third quarter of last year.

UBS is Europe's biggest bank and the world's biggest money manager. Less exposure to risk in areas like bad debt and insurance investments - two areas which saw rival Credit Suisse Group report a record loss last year - aided the Zurich-based bank.

'UBS has a better strategy,' said Dieter Buchholz, who helps manage the equivalent of $2.9bn at BNP Paribas Private Bank in Zurich and holds UBS shares. Net income rose 78% to 1.67bn Swiss francs ($1.22bn) in the third quarter, from 942m francs in the year- earlier period, UBS said.