Swiss bank UBS posted its first quarterly profit for more than a year, but client withdrawals continued to rise.

The bank posted a net profit of 1.21bn Swiss francs in the three month ended 31 December, thanks to lower costs and a 480m francs US tax credit. In the same period last year, UBS reported a net loss of 9.58bn francs.

Chief executive Oswald Gruebel said he was confident that the bank's positive performance would continue but added that withdrawals will continue in the immediate future.

'We entered 2009 at the height of the crisis. By the end of 2009 UBS has returned to profitability, delivering on its priorities,' he said in a letter to shareholders.

'We expect that our return to profitability will increase clients' confidence in UBS and restore our reputation.'

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