ZURICH: Banking giant UBS announced that its net profit had risen by 32 percent in the third quarter to 762 million Swiss francs (632 million euros, $802 million).

The leap of almost one third compared to the same period of 2013 was fueled by 1.3 billion francs’ worth of tax credits.

That helped offset 1.8 billion francs in new provisions for litigation and regulatory costs.

UBS is among a group international banks which are subject to investigations in a swathe of countries over alleged manipulation of interest rates on the foreign exchange market.

In the past, it has also been among the banks in hot water as countries such as the US seek to make them pay for past abetting of tax-dodging by their citizens.

While UBS settled its US tax case in 2009, it remains on watch by American justice authorities amid probes of individual former executives.

In the wake of the US settlement, UBS noted in its earnings report, it is also being investigated by justice authorities in France, Germany and Belgium.

UBS said that it believed that 1.8 billion francs was the appropriate provision.

“As in the case of other matters for which we have established provisions, the future outflow of resources in respect of such matters cannot be determined with certainty based on currently available information,” it noted, saying that the sums required could ultimately be “substantially greater” or less.

Operating income at Switzerland’s largest bank — the equivalent of turnover — rose by 10 percent to more than 6.8 billion francs.

The bank’s performance failed to meet the expectations of analysts polled by financial news agency AWP, who on average had foreseen 862 million francs in profit and operating income of 6.9 billion francs.

UBS said that of the 1.8 billion francs in provisions during the third quarter, 1.6 billion francs were pinned on the investment banking division.

That division posted an operating loss of 1.2 billion francs.

In the face of a tougher new regulatory environment and the financial crisis, UBS launched a root and branch change in it operations three years ago.

“I am very pleased with our underlying performance for the quarter, which again demonstrates the strength of our franchise. At the same time, we are actively addressing litigation and regulatory matters,” said Sergio Ermotti, its chief executive.

“Three years since introducing our strategy, the business is far stronger, its earnings power is much greater and our absolute and relative capital position speaks for itself. That gives us every confidence in our ability to deliver on our capital returns policy,” he added.

UBS has refocused its operations on wealth management, a division which turned a pre-tax operating profit of 707 million francs in the third quarter, its highest level since the second quarter of 2009.

Net new money in UBS’ wealth management businesses was 9.8 billion francs, with the Asia-Pacific region the main driver, though the figure was slightly down from the 10.7 billion francs which flowed in in the second quarter.

The Americas wealth management arm, meanwhile, posted pre-tax operating profit of 236 million francs, thanks to an influx of $4.9 billion in new money.