ZURICH, , (Pakistan Point News - APP - 27th Jan, 2017 ) - Swiss banking giant UBS on Friday said profits plunged 46 percent in 2016 under the weight of restructuring costs and a downturn for its investment bank in difficult market conditions. Switzerland's largest bank reported its net profits for the year were 3.3 billion Swiss francs (3.09 billion Euros, $3.3 billion). The results included 693 million Swiss francs in provisions for potential legal costs and 1.
4 billion in restructuring charges. "Despite a very challenging market environment in 2016, we achieved solid results..," chief executive Sergio Ermotti said in a statement. "While we saw persistent client risk aversion and substantial cross-border outflows, we generated over CHF 40 billion of net new money in our wealth management businesses". The bank said it had been able to reduce costs by 1.6 billion Swiss francs, nearly 50 percent more than in the previous year, and was on track to achieve its target of 2.1 billion by the end of this year. Ultra-low and negative interest rates have been hitting big banks hard, as well as regulatory measures to improve their ability to absorb losses. Swiss banks have also been grappling with the impact of tighter regulation and the end of banking secrecy in Switzerland.