UBS net profit down 18 percent

Swiss banking giant UBS said Tuesday that its net profit fell 18 percent to 1.8 billion francs (1.4 billion euros, $2.0 billion) in the first quarter, hurt by a tax charge and higher personnel costs. Nevertheless, the result was slightly better than the 1.7 billion francs forecast by analysts for the period. The group also recorded net new money of 22.3 billion francs in the first quarter, marking a recovery from a year ago when outflow reached 18 billion francs. Group chief executive Oswald Gruebel said: "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." UBS said it expected improvement in parts of its investment banking business for the coming quarter, but that competition for talent and salary increases would put pressure on its expenses.