Finance

UBS surprises with 9% rise in Q3 net profit



© Reuters. FILE PHOTO: The logo of Swiss bank UBS is seen in Zurich, Switzerland October 25, 2018. REUTERS/Arnd Wiegmann

By Brenna Hughes Neghaiwi

ZURICH (Reuters) – UBS posted a 9% rise in third-quarter net profit on Tuesday, as continued trading helped the world’s largest wealth manager to its best quarterly profit since 2015.

Its third-quarter net profit of $2.279 billion easily surpassed a median estimate of $1.596 billion from a poll of 23 analysts compiled by Switzerland’s largest bank.

“Our business momentum, our focus on fueling growth, on disciplined execution and on delivering our full ecosystem to clients – all of this led to another strong quarter across all of our business divisions and regions,” Chief Executive Ralph Hamers said in a statement.

In each of the last four quarters, UBS saw double-digit percent gains in net profit as buoyant markets helped it generate higher earnings off of managing money for the rich.

From July through September, favourable market conditions and higher lending and trading amongst its wealthy clientele unexpectedly helped raise earnings over the bumper levels reported in the third quarter of last year.

The profit hike comes on the heels of a stellar quarter for U.S. and British banks which, encouraged by economic rebounds, released cash set aside for pandemic losses. A record wave of dealmaking activity also bolstered results for the likes of Goldman Sachs (NYSE:) and JPMorgan (NYSE:).

Pre-tax profit for UBS’s investment banking division jumped 32%. A rise in dealmaking offset a 7% drop in global markets trading revenues that came after results in the prior year period were boosted by a one-off gain.

Its flagship wealth management business saw pre-tax profit rise 43%. Switzerland’s biggest bank also said it wants to build a digitally scalable advice model for affluent clients in the Americas as part of its 2025 vision, to be presented in February.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.