The bank's wealth management business has continued to see large inflows
UBS has reached an agreement with US housing agencies to settle claims it had mis-sold mortgage investments.
The Swiss bank said it had reached an agreement in principle with the Federal Housing Finance Agency (FHFA) over the investments sold between 2004 and 2007.
In its statement, UBS also said it expected its second quarter net profits for shareholders to total 690m Swiss francs ($734m; £480m).
UBS set aside a total of 865m francs in the quarter to cover litigation.
Of that, 100m francs is related to a deal with the UK authorities to disclose the account details of British tax evaders and hand back unpaid taxes.
The bank said that its wealth management business continued to see large inflows - totalling 10.1bn francs during the three-month period - despite the entire Swiss banking sector coming under scrutiny from foreign tax authorities and its own regulators.
UBS is currently under investigation from French authorities over allegations it enabled tax evasion.
Mis-representationThe deal with the FHFA relates to residential mortgage-backed securities sold during past decade's US property bubble to federal housing agencies.
The underlying mortgages behind the investments later went bad, with many borrowers proving unable to repay their loans.
UBS is one of 18 international financial firms accused by the FHFA of mis-representing the mortgages as being better quality than they really were.
The FHFA is also representing Freddie Mac and Fannie Mae, which had to be rescued by the US government during the 2008 financial crisis.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23402147#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
