Swiss bank UBS said on Tuesday it expects to report a modest net profit for the third quarter after a $2.3 billion rogue trading scandal.

It also said it expected net new money in its wealth management business to be broadly similar to the second quarter.

UBS expects to report a modest net profit attributable to shareholders for the third quarter of 2011, it said in a statement.

UBS said its third-quarter result would be hit by the 2.3 billion allegedly lost by London trader Kweku Adoboli and some 0.4 billion Swiss francs of restructuring fees as the firm seeks to trim costs.

But a 1.5 billion Swiss franc credit gain on its financial liabilities and a 0.7 billion franc gain on the sale of treasury-related investments in Wealth Management in Switzerland were expected to have a positive impact on the Q3 result, it said.

UBS added its BIS Basel II Tier 1 capital ratio was expected to decline slightly due to the trading scandal.

UBS, which will report third-quarter results on October 25, said its plans to cut costs remained on track and staff cuts would continue into 2012.

(Reporting by Caroline Copley; Editing by David Cowell)