Switzerland's top banking group UBS on Tuesday announced its second highest annual profit ever in 2003 on the back of a recovery of confidence in financial markets.
UBS recorded an 81 percent increase in net profit last year to 6.38 billion Swiss francs (4.06 billion euros, 5.16 billion dollars), the bank said in a statement.
The rise over 2002 excluding amortisation and profits from sales or cash write-downs, dubbed "significant financial events", amounted to 33 percent, UBS added.
Private clients brought in 50.8 billion Swiss francs in new assets to UBS last year compared with 36.2 billion Swiss francs in 2002.
"2003 turned out to be a surprisingly good year for financial markets and a terrific year for UBS," said chief executive Peter Wuffli.
"Our businesses have made sustainable competitive gains across the globe," he added.
UBS also recorded its best quarterly result in three years in the final three months of 2003, with a net profit of 1.85 billion Swiss francs against a loss of 101 million Swiss francs a year earlier.
The data exceeded analysts expectations, driving up the UBS share price on the Zurich stock exchange by 1.9 percent to 94.7 Swiss francs in morning trade.
UBS said it had recorded stronger results across the board in 2003.
Investment banking made "significant competitive gains", according to the banking group.
It also reported rising markets, as well as "more frequent trading" by investors in the fourth quarter.
Return on equity rose to 20.9 percent in 2003 against 13.9 percent a year earlier, edging above UBS's previously announced target range. "This was the best result since the very strong return of 24.3 percent achieved in the booming markets of 2000," the bank commented.
"Conditions appear to be improving and investors are increasingly optimistic," after years of uncertainty that weighed on markets, it added.
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