Mubasher: UBS, Switzerland’s largest lender, on Tuesday said that its net profit dropped by 16% year-on-year in the third quarter of this year, with investment banking business recording a 59% drop amid a “challenging environment.”

The Swiss bank’s net profit attributable to shareholders totalled $1.05 billion in Q3-19, compared with $1.25 billion in Q3-18.

Operating income fell by 5% to $7.09 billion during the three-month period ended last September, compared with $7.43 billion a year ago.

UBS expects to take restructuring costs of $100 million in the fourth quarter of this year.

Like most banks, UBS is aiming to restructure while facing headwinds from low and negative interest rates.

“Low and persistent negative interest rates and expectations of further monetary easing will adversely affect net interest income compared with last year,” the bank said in its outlook.

“As we execute on our strategy, we are balancing investments for growth while managing for efficiency,” it added.