Mubasher: UBS bank on Monday reported a net profit of CHF 1.165 billion ($1.2 billion) in 2017, despite being hit by a CHF 2.865 billion ($3.01 billion) charge resulting from the US tax overhaul.

Excluding the deferred tax assets (DTAs) from the enactment of the US tax reform, the Zurich-based bank’s profits would have increased by 26% year-on-year.

Figures were lower than analysts’ forecasts of CHF 1.257 billion, according to a poll conducted by Reuters.

Results were also down from CHF 3.3 billion profits achieved in 2016, the bank’s financial statement showed.

"2017 was an excellent year for us. We delivered stronger financial results and met our net cost reduction target," the bank’s CEO Sergio Ermotti said.

“UBS’s capital position is very strong, with a fully applied CET1 capital ratio of 13.8%, a CET1 leverage ratio of 3.7% and total loss-absorbing capacity of CHF 78 billion,” the statement added.

At the level of the fourth quarter of 2017, UBS registered a net loss of CHF 2.224 billion due to the write-down, versus a profit of CHF 636 million during the same period of the previous year.

The bank’s top official further noted that “Greater regulatory clarity means we can open a new chapter for UBS, allowing us to sharpen our focus on growth across our businesses, make further investments in technology and deliver attractive returns to shareholders."