UnionBanCal Corp. posted an 18% drop in third-quarter net income as the California bank boosted it credit-loss provisions sixfold as credit conditions continue to deteriorate.

The regional bank — which is set to be bought out by majority owner Mitubishi UFJ Financial Group Inc. — reported net income of $104.8 million, or 75 cents a share, down from $127.5 million, or 92 cents a share, a year earlier. Earnings from continuing operations rose to 79 cents from $1.08 a year ago.

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