UBS AGsees "encouraging signs" for its second-quarter performance and isproceeding as planned with efforts to reposition itself around itsprivate bank and investment banking arms, its chief executive officersaid Tuesday in a company memo.

CEO Oswald Gruebelsaid in the memo that further details about the Swiss banking giant's"comprehensive turnaround program" would be disclosed with itssecond-quarter results Aug. 4.

Despite warning investors toexpect a net loss because of a reversal of previous credit gains on owndebt and restructuring charges, Gruebel said the second quarter showedencouraging signs, such as lower writedowns on UBS' remaining riskpositions.

The restructuring effort centers on a sharper focus ofprivate banking and has resulted in major steps such as the sale ofBanco Pactual of Brazil earlier this year and job cuts.

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