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BUZZ-UBS says conditions remain challenging, shares slump

Tue, 02nd Feb 2016 10:53

(Adds details, mkt value lost)

** Shares of Switzerland's biggest bank fall c.8pct after it reports a surprise outflow of funds from its wealthmanagement business

** More than 5 billion Swiss francs ($4.90 billion) wipedoff UBS's market value with stock poised for worst day in >1 yr

** UBS says could face more loan loss costs from energysector; Does not comment on Jan performance, but says"conditions remain challenging"

** Reports better than expected profit, its best since 2010;Net profit rose to 6.20 bln Swiss francs in 2015, comfortablybeating analysts' expectations of 5.75 bln francs

** The bank however expects negative market performancesince the start of 2016, low interest rates and the relativestrength of the Swiss franc to continue to present headwinds

** UBS shares are flirting with 52-week lows; -15 pct YTD

** Stock 3rd top faller on Stoxx 600 and thebiggest drag on Stoxx banks index

** Peers HSBC -2.5 pct, BNP Paribas -3.5pct($1 = 1.0211 Swiss francs) (thyagaraju.adinarayan.thomsonreuters.com@reuters.net)

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