UBS reports 22-percent drop in 4Q net amid tax effects

Markets Associated Press

Swiss bank UBS has reported a 22-percent drop in net income in the fourth quarter last year, due in part to tax effects, but says rising investor confidence in the United States could boost its wealth management business.

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Citing "very challenging" market conditions in 2016, the bank reported net income of 738 million Swiss francs ($736 million) in the fourth quarter, compared with 949 million a year earlier.

UBS also recorded more than 1 billion francs in negative income due to cash-flow hedges, citing a drop in unrealized gains from hedging derivatives as long-term interest rates increased.

Net operating profit jumped to 848 million francs, up from 234 million a year earlier.

For the full year, net income plunged to 3.3 billion francs, from 6.2 billion in 2015.