UBS: Q3 earnings better than expected

(CercleFinance.com) - UBS has reported quarterly profit that is above expectations today, with the sound performance of its investment banking activities and cost control having compensated for market conditions that are deemed "difficult".


The Swiss bank posted Q3 net income that is up 24% at 1.73 billion dollars, compared with the consensus of 1.52 billion dollars.

The group says it has benefited from the repositioning of its institutional clients, who have been very active against a background of highly volatile exchange rates and interest rates.

UBS explains that it attracted 17 billion dollars in net new assets into its wealth management business, 18 billion dollars in new money in its asset management business and 400 million dollars in net new investment products at its private banking division.

Its CET1 capital ratio stood at 14.4%, well above its target of 13% and the consensus of 14%.

The Swiss establishment, which says it benefits from its exposure to rising interest rates and its cost control, says that it is well placed to face the current macroeconomic context thanks to its efficient and "low capital intensity" model.

Following these announcements, the largest Swiss bank's shares rose 3% in early trading, outperforming the European banking stock index (+1.5%).

This reduces the decline in its share since the start of the year to less than 5% against -11.5% for the STOXX Europe 600 Banks index over the same period.


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