UBS: Profit up 15% despite fines

LEADING Swiss bank UBS turned in a strong profit performance in the second quarter, but highlighted yesterday the stark risks financial institutions faced from campaigns by tax and regulatory bodies. UBS, reporting a 15 percent net profit rise, revealed that it had settled a tax dispute this month in the German state of North Rhine-Westphalia with a payment of slightly more than e300 million (R4.2 billion). The payment follows investigations of UBS clients suspected of using the bank to evade taxes. It is also being investigated in Baden-Württemberg. The bank said it had made a provision of Sf120 million (R1.4bn) for the dispute in Germany and had put aside Sf254m for litigation and disputes. – Sapa-AFP