ZURICH: Swiss banking giant UBS on Tuesday reported higher profits for the first quarter despite taking a hit from the collapse of US hedge fund Archegos.

The bank suffered losses of $774 million (640 million euros) related to Archegos during the period, it said in a statement.

But it was far less than its Swiss rival Credit Suisse, which last week said it booked a charge of 4.4 billion Swiss francs ($4.8 billion) to cover damage related to Archegos, and said it expects additional losses of 600 million francs in the second quarter.

UBS said it had "exited all remaining exposures" to the fund during April. Additional losses will have to be recorded in the second quarter but are "immaterial" for the group, it said.

UBS profits for the first quarter were up 14 percent at $1.8 billion.

"In the first quarter of 2021, our clients benefited from our broad capabilities, geographic reach and connectivity," CEO Ralph Hamers said in the statement.

"However, our first quarter results also factored in a loss related to the default by a single US-based prime brokerage client.

"We are all clearly disappointed and are taking this very seriously. A detailed review of our relevant risk management processes is underway and appropriate measures are being put in place to avoid such situations in the future."