TIMELINE: UBS seeks to turn corner after year of turmoil

(Reuters) - Swiss bank UBS AG said on Thursday it expected to make a small profit in the third quarter, as the world's biggest wealth manager seeks to turn the corner after heavy writedowns in the credit crisis.

The Swiss bank, which has written down $42 billion due to its large exposure to toxic assets, said it had substantially reduced its U.S. commercial and residential mortgage-related assets, mainly through disposals.

UBS also reiterated it expected 2009 would be a profitable year overall. UBS has posted four straight quarters of losses, most recently reporting a loss of $322 million in the second quarter. It is due to announce third quarter results on November 4.

Following are key events in the downturn that impacted the world's biggest banker for the rich, which started in May, 2007, when it closed down its Dillon Read hedge fund unit.

* CLOSES DILLON READ HEDGE FUND UNIT - MAY 3, 2007

UBS shocks investors by closing down its Dillon Read hedge fund unit after posting lower-than-expected first-quarter results, a rare event from the bank, whose track record had earned it a reputation as a serial outperformer.

* WRITEDOWNS TO CAUSE THIRD-QUARTER LOSS - OCTOBER 1, 2007

UBS warns a 4 billion Swiss franc subprime hit would cause a third-quarter pre-tax loss of between 600 and 800 million Swiss francs. A few weeks later, UBS's quarterly loss -- its first in nine years -- at 726 million Swiss francs is within that range.

* MORE WRITEDOWNS - JANUARY 30, 2008

UBS announces another subprime writedown, this time of $4 billion. Two weeks later the bank posts a full-year loss of 4.4 billion Swiss francs, announcing tens of billions of dollars in new exposure to risky U.S. mortgages, leveraged finance and complex securities, sending shares tumbling.

Shareholders then back a $11.9 billion capital injection from Singapore and an unidentified Middle East investor.

* WRITEDOWNS DOUBLE, NEW CHAIRMAN - APRIL 1, 2008

UBS doubles its writedowns from the subprime crisis, dumps its chairman, Marcel Ospel, and seeks more emergency capital.

The bank writes down an additional $19 billion in ailing assets, causing a net loss of $12 billion in the first quarter. It proposes its lawyer, Peter Kurer, as Ospel's successor.

Activist investor and former chief executive Luqman Arnold then demands UBS shake up its governance and structure, with a view to selling its investment banking business.

* SLASHES JOBS - MAY 6, 2008