UBS CFO Todd Tuckner acknowledged that the bank's performance has been affected by sluggish economic growth in Europe.

This has resulted in a credit loss expense of around 150 million Swiss francs ($169.68 million) in the personal and corporate banking sector for the fourth quarter.

Tuckner explained that while the macroeconomic environment in Switzerland remains stable, neighboring eurozone economies, particularly Germany, are experiencing slower growth.

This has had an impact on Swiss corporates involved in export-import activities.

Tuckner also mentioned that the aftermath of the Credit Suisse collapse, which UBS acquired last year, has further complicated the situation.

As a result, the credit loss expense has increased, reflecting the broader challenges faced by businesses in the region.