UBS AG reported its first quarterly profit in more than a year, but its private banking business continued to hemorrhage wealthy clients spooked by assaults on Switzerland's bank secrecy and lingering doubts about the Swiss bank's financial health.

UBS swung to a profit of about $1.13 billion in the fourth quarter, from a loss of about $8.98 billion a year earlier, boosted by a tax credit and aggressive cost cutting. It was UBS's first profitable quarter since Chief Executive Oswald Grubel arrived a year ago aiming to turn around a bank that has been among the hardest hit by the financial crisis.

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