UBS reported profits before tax of Sfr1.8bn (€1.2bn) for the first quarter of 2002, down from Sfr10bn for the same period last year, as its private equity business suffered write-downs of Sfr383m.

UBS said it expected the write-downs to continue, as market conditions remain difficult for private equity valuations and exit opportunities. The firm is reducing UBS Capital, its private equity operation, and has allowed the management of its French and UK arms to seek their independence.