Swiss bank UBS reported earnings in line with forecasts on Tuesday, as its wealth management business attracted strong inflows, but said it saw "abnormally low" transaction volumes in the first quarter as clients became more risk averse.
CEO Sergio Ermotti told CNBC he expected the environment to remain challenging.
"We had really, a new level of client risk-aversion in the first quarter. We observed it across the board and particularly it was reflected in transaction volumes and activity, where we saw the lowest level we could observe for many, many years and therefore, clearly, our profitability has suffered," Ermotti said on Tuesday.
First-quarter adjusted profit before tax came in at 1.4 billion Swiss francs ($1.47 billion), the bank reported on Tuesday, down from adjusted profit before tax of 2.3 billion Swiss francs in the same period in 2015.