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Profit plunge for Swiss banking group UBS


Swiss banking giant UBS AG has posted second-quarter net profits of 425 million Swiss francs ($A415.6 million), a sharp drop from the 1.02 billion Swiss francs it posted in the comparable period a year ago.

Switzerland's largest bank said on Tuesday the 58 percent net profit drop reflected "challenging conditions marked by increased volatility and greater client caution".

The bank, however, surpassed requirements to increase its capital cushion and prudently cut costs that should lead to better results by the end of 2013.

The bank said it was confident it could attract investment money from clients.

Chief Executive Sergio Ermotti told investors in a statement that UBS would continue to focus on "prudent liquidity management, further reducing risk-weighted assets and delivering the best possible service to our clients".