Swiss wealth manager UBS has reported a net profit of CHF738m for the fourth quarter of 2016, a 22% decrease compared to CHF949m for the same quarter of 2015.

Adjusted pre-tax profit was CHF1.10bn, while reported pre-tax profit was CHF 848m.

The bank said that the results included provisions for litigation, regulatory and similar matters of CHF162m, and restructuring costs of CHF372m.

The group’s operating income stood at CHF7.05bn, a 4% increase from CHF6.77bn in the prior year.

The group said in its earnings statement that it achieved CHF1.6bn of annualised net cost savings as of 31 December 2016, an improvement from CHF1.1bn a year ago, and is on track to achieve its CHF2.1bn target by 2017 end.

Wealth Management

The group’s Wealth Management arm delivered an adjusted profit before tax of CHF 511m for the fourth quarter of 2016, a 1% rise from the corresponding quarter of 2015.

The unit’s negative net new money of CHF 4.1bn was driven by CHF7.4bn in cross-border outflows, mainly driven by outflows from emerging markets and Asia Pacific.

Wealth Management Americas recorded adjusted profit before tax of $358m for the fourth quarter of 2016, a substantial increase from the previous year reflecting lower expenses for provisions for litigation, regulatory and similar matters, and higher recurring fees and net interest income. Net new money was negative $1.3bn.

UBS group CEO Sergio Ermotti said: “Despite a very challenging market environment in 2016, we achieved solid results, thanks to our balanced business and geographic mix, as well as our strong focus on executing our strategy.

“Wealth Management Americas delivered a record performance, and our Swiss Personal and Corporate business achieved its best full-year results since 2008. While we saw persistent client risk aversion and substantial cross-border outflows, we generated over CHF 40 billion of net new money in our wealth management businesses.”