UBS has posted encouraging first-quarter results thanks to cost-cutting and a strong performance in selected markets, which helped offset the effects of a falling dollar.

Marcel Ospel, chairman of UBS, and Peter Wuffli, the firm's president, said the dollar's 20% fall against the Swiss franc "significantly impacted" income and expenses in the first quarter. They said: "This accounts for almost the entire 7% year-on-year drop in adjusted profit." UBS posted net profits of Sfr1.21bn (€800m), beating most analysts' forecasts.