UBS is no longer in "intensive care," but won't be considered out the woods until it returns to profitability, Switzerland's financial regulator said yesterday, according to a Dow Jones report. Meanwhile, Morgan Stanley analysts have cut their share price estimate for the Swiss bank, a Bloomberg report said.

"They must return to profitability in their investment bank, and not simply rely on their private bank for profits," Daniel Zuberbuehler was quoted as saying by the news agency. He was speaking on the sidelines of a meeting of the International Organization of Securities Commissioners, or IOSCO. Mr Zuberbuehler is the vice-chairman of Switzerland's Financial Market Supervisory Authority, the country's regulator.

UBS declined to elaborate on Mr Zuberbuehler's comments.

Meanwhile, Morgan Stanley has said that European banks including Credit Suisse and Deutsche will issue third quarter earnings results that beat market forecasts, but was downbeat on UBS.

The Wall Street bank raised earnings per-share estimates and share price targets on Deutsche and Credit Suisse.

The per-share estimate for UBS was cut to SFr0.30 from SFr0.43.