Swiss bank UBS saw its shares slide on Tuesday on news that investors had pulled billions out of its division serving wealthy clients – a token of the market turbulence that has shaken the world in the past few months. The Zurich-based bank, which nevertheless booked higher fourth quarter profits, cited “very low levels of client activity and pronounced risk aversion” as it reported 3.4 billion Swiss francs ($3.3 billion) had flowed out of its wealth management arm, which handles money from rich people outside the U.S. Fourth-quarter outflows from clients in emerging markets and in Europe outweighed inflows in the Asia Pacific region and Switzerland.
Shares in UBS Group AG were down 7.8 percent at 15.37 Swiss francs in midday trading in Europe. The share drop came despite a 10 percent rise in net profit in the October-December quarter, to 949 million francs from 858 million francs in the same period a year earlier. The result beat estimates for 867 million francs compiled by financial information provider FactSet. FULL REPORT