UBS has greatly mitigated its exposure to problem mortgage assets through an arrangement with the Swiss National Bank and said its second quarter will look better than its first, but it still is anticipating a loss for the period.

"The operating result for the quarter is expected to represent an improvement compared with the first quarter of 2009, largely attributable to better market conditions affecting the investment bank and a reduction in losses and writedowns on legacy risk positions," UBS said.

However it also noted that, "Based upon preliminary results for April and May and estimated results for June, UBS expects to incur a net loss for its second quarter 2009."

The company said the majority of the expected loss "is attributable to own credit and the restructuring charges that have already been announced."

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