A rare piece of good news from the banking world. Switzerland’s UBS has told its shareholders it expects to make “a small profit” in the third quarter after a year of losses. Chairman Peter Kurer also forecast that 2009 will be a profitable year.
The Zurich- based bank has been hard hit by US sub-prime mortgage losses. In the wake of that, UBS said it has “substantially reduced its US commercial and residential mortgage-related positions.’‘ The bank is also planning to lay off more employees.