* UBS to report results on Nov. 3, 0600 GMT
* UBS net loss seen at 207 million Sfr in Q3 vs 1.4 bln Sfr Q2
* About 1 bln Sfr losses on own debt to hit investment bank
* Bank expected to have missed most of Q3 market rebound
* Client outflows expected to have continued into Q3
By Lisa Jucca, European Wealth Management Correspondent
ZURICH, Oct 29 (Reuters) - Swiss bank UBS is unlikely to have been able to capitalise on a market upswing in the third quarter and will show ongoing client outflows even as it reports a narrower quarterly net loss next week.
One year after being rescued by the Swiss state, UBS is seen posting on average a net loss of 207 million Swiss francs ($201.9 million), much narrower than the 1.4 billion franc loss it reported in the second quarter.
A year earlier, UBS turned a small quarterly profit, mainly due to tax credits, but still ended 2008 with the biggest annual loss in Swiss corporate history.
Analysts will be scanning third-quarter data for signs of recovery in the core wealth management business, which has suffered outflows while UBS struggled to emerge from the subprime crisis and was also hit by a high-profile U.S. tax row.
"The figure on wealth management flows will be the most crucial number that they disclose," said Matthew Clark, an analyst at Keefe, Bruyette & Woods.
"Overall we are expecting more outflows, but the market will be looking for more details on the trend and on where the flows were positive or negative."
UBS suffered outflows in America and among offshore clients in the second quarter, but was able to gain new client money in Asia and stemmed withdrawals in Switzerland.
Analysts polled by Reuters expect UBS to report net client withdrawals of 9.5 billion at its Wealth Management and Swiss Bank unit, half that in the previous quarter.
Analysts also say UBS' investment bank is unlikely to match stellar results seen at some European peers such as Credit Suisse and Deutsche Bank as UBS has exited several business lines while pushing through its restructuring.
Credit Suisse, which managed without state aid, posted a 2.4 billion franc net profit this quarter.
NO CLEAN NUMBERS
UBS' results are expected to be negatively affected by losses on own debt of about 1 billion francs, plus around 300 million of losses related to the disposal of Brazilian unit Pactual and up to 200 million francs of losses due to the Swiss government's sale of its stake in the bank on Aug. 20.
"These results contain some legacy issues," said Helvea analyst Peter Thorne. "All three have been flagged by the company, but they still represent a mess for those looking for a "clean" set of figures."
Berne injected 6 billion francs into UBS last October to prop it up in the financial crisis in exchange for its stake.
Shares in UBS have gained 16 percent since the start of the year, while shares at Credit Suisse, now slightly larger than UBS by market value, have nearly doubled. The DJ Stoxx European banking index has gained nearly 50 percent this year.
UBS settled on Aug. 19 a civil lawsuit in which U.S. authorities accused it of helping rich Americans hide money in secret Swiss accounts. This week it hired Merrill Lynch veteran Robert McCann to try and rebuild its loss-making U.S. franchise.
"We expect more clarity on how much the closing of the IRS (Internal Revenue Service) case, including the handing over of U.S. client data, has had on net new money outflows, reputation and strategy for wealth management Americas," said Teresa Nielsen, an analyst with Vontobel.
Chief Executive Oswald Gruebel, appointed in February to turn around UBS, is expected to shed more light on its strategy going forward at an Investor Day scheduled for Nov. 17. ($1=1.025 Swiss Franc) (Editing by Jon Loades-Carter)