London
15 °C
Manchester
12 °C
Glasgow
Dublin
Belfast
Washington
19 °C
Denver
Atlanta
Dallas
Houston Texas
New Orleans
27 °C
El Paso
16 °C
Phoenix
Los Angeles
-1 °C
-5 °C
-15 °C
10 °C
15 °C
UBS smashes forecasts with $1.4 bn net profit / Photo: © AFP/File
NYSE - LSE
| BCC | 3.75% | 136.77 | $ | |
| RBGPF | -3.28% | 61 | $ | |
| SCS | 1.05% | 12.34 | $ | |
| RIO | -0.86% | 66.01 | $ | |
| BTI | -0.39% | 34.325 | $ | |
| GSK | -3.47% | 36.89 | $ | |
| AZN | -3.42% | 72.73 | $ | |
| NGG | -0.02% | 65.105 | $ | |
| BP | 0.37% | 29.47 | $ | |
| CMSC | 0.32% | 24.65 | $ | |
| JRI | 0.44% | 13.037 | $ | |
| CMSD | -0.07% | 24.823 | $ | |
| RELX | -1.74% | 47.09 | $ | |
| RYCEF | 0.14% | 7.22 | $ | |
| BCE | -0.76% | 32.215 | $ | |
| VOD | 1.07% | 9.38 | $ |
UBS smashes forecasts with $1.4 bn net profit
Swiss banking giant UBS said Wednesday it earned a net profit of $1.4 billion in the third quarter, beating analyst expectations.
The bank, which suffered a $715 million loss in the same period last year after the forced takeover of rival Credit Suisse, posted a five percent increase in revenue to $12.3 billion.
Analysts polled by Swiss agency AWP expected profit of $758 million on revenue of $11.5 billion.
UBS shares initially rose more than two percent in morning trading, but then turned lower, dropping nearly three percent.
UBS said current conditions should continue in the fourth quarter "against the backdrop of anticipation of a soft landing for the US economy".
"The macroeconomic outlook, on the other hand, is looking gloomier in the rest of the world," the bank said, stressing that uncertainties related to geopolitical conflicts and the US election "could affect investor behavior."
The bank saw revenues climb by four percent in its wealth management activities, and by 22 percent in its investment bank.
During the quarter, it also achieved an additional $800 million in savings, saying it was "ahead of schedule for the financial and operational integration" of Credit Suisse.
"UBS appears to be one step ahead with its cost reduction plans and now expects cumulative gross cost reductions of $7.5 bn by the end of 2024 compared to $7 bn previously," said Zurcher Kantonalbank analyst Michael Klien in a note to clients.
The overall target of $13 bn in savings by the end of 2026 remains unchanged, he noted.
In 2023, the banking giant was forced to buy its former rival under pressure from Swiss authorities to avoid a bankruptcy of what was then the second largest bank in Switzerland.
In addition to cleaning up bad debts at Credit Suisse's investment bank, UBS faced huge challenges in integrating the bank.
It has been migrating client accounts on a country-by-country basis, with the transfer of the major retail Swiss operation set for next year.
"The migration of data of 1.3 mn clients poses the next big challenge," said Vontobel analyst Andreas Venditti.
"However, the first wave of client account migrations has been completed successfully and the bank has (so far) been ahead of schedule on issues it can control," he added.
D. Wassiljew--BTZ
