UBS has warned of 1.8 billion Swiss francs ($1.9 billion) in litigation charges as it reported forecast-beating third-quarter profits, saying charges were likely to remain elevated for the "foreseeable future".
"We believe that the industry continues to operate in an environment where charges associated with litigation, regulatory and similar matters will remain elevated for the foreseeable future," the Swiss banking giant said on Tuesday in a press release detailing its quarterly results.
The bank is preparing to settle probes into alleged currency-rigging, having been hit by an earlier scandal involving the manipulation of interest rates. Other major banks, including JPMorgan, Citigroup and Barclays are also seeking to settle U.S. and U.K. investigations into foreign exchange markets.
UBS reported third-quarter net profit of 762 million Swiss francs ($802 million) on Tuesday, narrowly beating expectations. Analysts polled by Reuters had forecast UBS would post a net profit of 737 million Swiss francs.
Speaking to CNBC, UBS CEO Sergio Ermotti said that macroeconomic and geopolitical issues were hurting the business, and that clients were "very concerned".