UBS Americas brokerage unit posts 3rd-qtr loss

* Financial advisers up 23 to 6,783

* Client assets up by 1 bln CHF to 743 billion CHF

* U.S. and Canada unit had net new money 300 mln francs

By Joseph A. Giannone

NEW YORK, Oct 26 (BestGrowthStock) – Swiss bank UBS AG’s (UBSN.VX: )
Americas brokerage unit posted a third-quarter loss after a
costly U.S. arbitration ruling, but its financial adviser ranks
rose for the first time in more than a year and outflows were

Clients also added more money than they withdrew for the
first time since the first quarter of last year.

The U.S. and Canadian wealth management operations of UBS
brought in 300 million francs ($292 million) of net new money.
UBS brokers had suffered 37.5 billion francs in withdrawals in
the previous five quarters.

The bank, which reports its U.S. and Canadian unit’s
results in Swiss francs, said the quarter reflected the
weakening dollar. It was the unit’s sixth quarterly pretax loss
since the fourth quarter of 2008.

Excluding a 78-million-franc arbitration ruling, UBS said the
unit turned a 31 million franc profit. [ID:nLDE69O0N5]

Nearly one year after former Merrill Lynch executive Robert
McCann took over as chief executive, the UBS brokerage posted a
pretax loss of 47 million Swiss francs ($46 million), compared
with 110 million francs ($107 million) of pretax income a year

That said, the long-struggling business showed signs of
progress. The ranks of financial advisers climbed by 23 to
6,783, while client assets rose by 1 billion francs to 743
billion francs ($724 billion).

Revenue fell to 1.34 billion francs ($1.31 billion), down
10 percent from the second quarter and 3 percent less than last
year. UBS said the declines were primarily due to a weakening
U.S. dollar against the Swiss franc.

Operating expense fell by 7 percent, excluding the
arbitration award, as McCann sheds excess real estate and cut
support and back-office jobs.
(1 Swiss franc = US$0.9745)
(Reporting by Joseph A. Giannone; Editing by Derek Caney)

UBS Americas brokerage unit posts 3rd-qtr loss