UBS Warburg has joined JP Morgan Chase, the US investment house, in the profits doldrums as write-downs on private equity investments skewed the bottom line.

About half of UBS group's overall 33% fall in net profit was blamed on losses from private equity investments, putting it among the worst performing financial institutions during the second quarter. UBS Capital lost Sfr351m (€232m) in quarter two, while the overall group's adjusted net profits were Sfr1.39bn compared to Sfr2.05bn in the second quarter of 2000.