UBS first-quarter net profit fell from a year earlier because of an accounting loss on its own debt, but it said it saw a "partial recovery" in client activity levels and improved inflows in wealth management despite continued caution on the eurozone outlook.

UBS said net profit fell 54% to Sfr827m ($918m) in the quarter ended March 31 from Sfr1.81bn, worse than the Sfr1.39bn forecast by analysts. Revenue fell 22% to Sfr6.53bn from Sfr8.34bn, coming in below the Sfr7.49bn forecast.