UBS, Switzerland's biggest bank, watered down some of its financial targets yesterday due to a tough economic backdrop and new Swiss capital rules, overshadowing a forecast-beating rise in third-quarter net profit.

Zurich-based UBS said difficult macroeconomic conditions, including slowing growth in China, as well as uncertainty over interest rates and stricter capital rules outlined last month, would hit performance.

For the third quarter, UBS’s net profit rose to 2.1 billion Swiss francs (€1.9 billion) from SFr762 million a year earlier when figures were hit by the bank beefing up legal reserves.

The result, the bank’s best quarterly performance in more than five years, was ahead of forecasts. UBS said its finance chief would shift roles in a raft of top management changes.

Reuters