The logo of Swiss banking giant UBS engraved on the wall is seen on its headquarters on May 8, 2019 in Zurich.
Fabrice Coffrini | AFP | Getty Images
LONDON — The world’s largest wealth manager, UBS, reported a jump in net income to $2.1 billion for the third quarter on Tuesday, easily beating analyst expectations. It marks a 99% jump from the same period a year earlier.
Analysts had expected the Swiss bank and asset manager to report $1.5 billion of net income for the third quarter, according to data from Refinitiv Eikon.
UBS said pre-tax profit for the period rose 92% to $2.6 billion, in what it described as its best third-quarter result in a decade.
Here are other highlights of the quarter:
- Operating profit hit $8.9 billion, versus $7.08 billion a year ago
- CET 1 capital ratio reached 13.9%, versus 13.1% a year ago
Pre-tax profit in UBS’ investment bank rose 268%, on the back of market volatility in the wake of the coronavirus crisis. While its wealth management division posted an 18% rise in profit before tax, and total invested assets hit an all-time high of $2.75 billion.
The bank attributed its results to ongoing strong client activity and the “benefits of a well-diversified business model with broad regional mix.”
“Our third quarter results continue to demonstrate that our strategy is differentiating us as we continuously adapt and accelerate the pace of change,” Sergio Ermotti, CEO of UBS, said in a statement.
It comes after an 11% drop in profit for the second quarter, as the global banking industry felt the full effect of the coronavirus pandemic.
Tuesday results will be UBS’ last under the leadership of CEO Sergio Ermotti, who is due to leave the bank this month. Ralph Hamers will become the new head on November 1.
“UBS has all the options open to write another successful chapter of its history under Ralph’s leadership,” Ermotti added.
This is a breaking news story and is being updated.