Zynga swings to profit, but outlook is soft

"UBS has, and reportedly numerous other financial institutions have, received inquiries from authorities concerning accounts relating to the Fédération Internationale de Football Association (FIFA) and other constituent soccer associations and related persons and entities", UBS said in its third-quarter financial report on Tuesday, without giving further details. However the bank said it will beat this year's target of a 10 percent return and aim for similar margins next year.

In terms of financials, Zynga posted a profit of $4 million for the quarter ended September 30, compared to an $8 million loss during the same quarter previous year. Switzerland's biggest bank is reorganising management and named Kirt Gardner the new chief financial officer, replacing Tom Naratil who is taking a role in wealth management, the bank also said.

Revenue for the quarter came in at $1.93 billion, up 1 percent from a year ago, but down 1 percent from last quarter.

The bank projected substantial costs related to new Swiss "too big to fail" rules faced by UBS and Credit Suisse. That compares with the 1-cent loss forecast by analysts, based on the average of 18 estimates compiled by Bloomberg. It recorded a net tax benefit of 1.295 billion mainly linked to an upward revaluation of deferred tax assets. "Big changes in the sentiment in emerging markets, big changes in China, big changes on the geopolitical front". Clients in Asia cut borrowings by "unusually high" amounts, the bank said. Pretax income from the division fell 9.6 percent to 639 million francs.

The regulation will mean "lower return for shareholders", Ermotti said.

"They will pay out more than 50 percent (of profits), everyone expects that", said Zuercher Kantonalbank's Andreas Brun, with an "overweight" rating on the stock. In June, she was appointed to the role of chief accounting officer. He added that over the past six years, McCann has done "tremendous" work in successfully turning around the US wealth unit and making it an important part of the group's profitability.