Switzerland's largest bank USB saw net profits slide by almost a quarter in the last three months of last year, but the decline proved smaller than observers had feared.

The main part of the bank's gains came from its Swiss retail and corporate banking business, while credit losses were less than in the preceding quarter.

The bank earned 1.1bn Swiss francs ($652.1m, �453m), down 24% on the figures from a year earlier.

The results were a pleasant surprise for the market, taking in account the recent row of high-profile failures.

Avoiding hot spots

UBS, the world's ninth largest bank by market value, emerged from a difficult quarter in a better state than most of its rivals. The bank avoided fallouts from the most of high-profile fallouts like Enron or Argentina.

The current year, though, remains problematic, it warned, with "limited" potential to improve its performance.

UBS will come under special scrutiny in 2002 after ousting its top executive in a surprise move in December.