GENEVA - Swiss bank UBS AG Reported a smaller-than-expected 18 percent drop in first-quarter net profit Tuesday as The Strength Of The Swiss franc ate ??Into overseas profits, and customer Said HAD Improved money inflow.

Net profit to 1.81 Dropped one billion francs ($ 2.05 billion) from 2.2 to one billion francs Earlier year, while Operating Income Fell 7 percent to 8.34 one billion francs.

UBS, Which Does Much of business icts Outside Switzerland, Said the U.S. dollar worth about 15 percent WAS less "during the first Three Months of the Year Compared With The Same Period in 2010.

"We&&9;ll continue to see That effect for Some Time," John Cryan, The bank&&9;s chief financial officer, Told reporters.The year-on-year difference in April about 20 percent WAS, he Added.

The results beat analyst expectations for lower earnings Even In The first quarter, as year-ago profit Were Boosted by Exceptional factors.

This, Together With healthy inflow of customer money everywhere EXCEPT Europe, UBS shares 5.6 percent Lifted to 17.52 francs ($ 19.96) On the Zurich exchange.

Net new money - an important indicator of future business - Increased by 22.3 one billion francs.UBS Chief Executive Oswald Gruebel Saw The figures "Confirming The Return of client trust and confidence."

Reported net outflow UBS has 18 trillion of France in the first quarter of 2010 faxless payday advance.

Analysts at Zuercher Kantonalbank Praised The Turnaround, thats the goal Noted Unexpectedly strong improvement in net new money down to lower WAS Largely Withdrawal outflows.

UBS aussi Improved margins in UBS&&9;s wealth management business Beyond Expectations, THEY SAID.

The Zurich-based bank Played up 7 percent icts Improved Compared With The profit last quarter of 2010, Citing Higher Income from trading icts investment banking unit.Purpose UBS benefited aussi To The tune of 150 million francs Some Freeing up from reserves set aside for It Had Lawsuits and Regulatory Exchange.

UBS Said It Expects volatile currency exchange rates due to Europe&&9;s sovereign debt crisis and Economic turmoil in the Middle East and Japan to offer attractive investment opportunities in The Second Quarter.

Will Increase Costs, too, did The Bank fights to stop staff from defecting to top The Competition. Cryan Said Increased base salaries by 5 to 10 percent.

Observers Have Questioned The Bank&&9;s mid-term target of annual net profit of 15 billion francs in Light of Greater Regulatory DEMANDS in Switzerland.

Cryan UBS Said That figure stands by.

"We&&9;re not deviating from our targets today," he said.

UBS Q1 profit down 18 pct cash inflow to Improve