UPDATE 1-UBS posts Q3 loss, wealth outflows continue

Tue Nov 3, 2009 1:23am EST

* Reports 564 mln Swiss franc Q3 loss, misses forecasts

* Bank does not expect immediate recovery of client flows

* Bank booked 2.150 bln Sfr accounting charges

* UBS suffers client outflows at all divisions

(Adds detail)

ZURICH, Nov 3 (Reuters) - Swiss bank UBS (UBSN.VX)(UBS.N) said it did not expect an immediate recovery of client inflows after a higher-than-expected accounting charge and withdrawals at all its key divisions pushed it into another quarterly loss.

The net loss of 564 million Swiss francs ($552.4 million) was UBS' fourth consecutive quarterly loss, narrower than a net loss of 1.4 billion Swiss francs in the second quarter but larger than average analyst forecasts.

Analysts expected on average a third-quarter net loss of 207 million francs, but forecasts ranged from a loss of 1.4 billion francs to a profit of 800 million francs. "We do not expect an immediate recovery in client net new money flows," UBS said in a statement.

Analysts had been looking for signs of recovery at UBS' core wealth management division, which has suffered persistent outflows while it struggled to emerge from the subprime crisis and was also hit by a high-profile U.S. tax row.

UBS' results contrast with stellar profits seen at European peers Credit Suisse (CSGN.VX) and Deutsche Bank (DBKGn.DE) as UBS has exited several business lines while pushing through a tough restructuring.[ID:nN2217547][ID:nLT114515] (Reporting by Lisa Jucca)

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