Profits at UBS's investment bank dropped 44% in the third quarter on the back of lower revenues from underwriting capital markets deals and equities trading. The bank also revealed it was being investigated by Hong Kong regulators over its role on certain initial public offerings.

The Swiss bank, reporting its results on October 28, said that pre-tax profits at its investment banking division - adjusted to exclude restructuring costs including personnel-related charges - dropped to Sfr342 million in the three months to September 30 from Sfr614 million a year earlier, when the division trounced analysts' predictions with profits that were nearly 50% higher than consensus estimates.