GENEVA — Shares in Swiss bank UBS skidded lower Tuesday after it warned it may miss its earnings targets due to the potential costs of new legal cases.
The stock fell 7.7 percent to 17.70 Swiss francs in Zurich despite a return to profit in the third quarter, as investors feared the bank may not be past the problems that had plagued it in recent years.
Switzerland’s biggest bank said it had a third-quarter profit of $644 million, a turnaround from the $2.3 billion loss it had in the same period a year ago.
But the Zurich-based group said it probably would not be able to achieve its profit goals for 2015 because of Swiss regulatory demands that it hold significantly more capital for risks from litigation.
UBS AG confirmed it was one of several global banks being investigated by authorities in Switzerland, the United States, and Britain for allegedly manipulating foreign exchange rates. It said it is reviewing its operations in its foreign exchange operations.