UBS reported a third-quarter pre-tax profit of almost $3.6 billion, up 27% year on year and largely in line with forecasts. Wealth management inflows supported the result, and the bank said the Credit Suisse integration is on track for completion by year-end. Reuters adds that UBS accelerated its share buyback while it still worries about new Swiss capital rules.
UBS reported a pre-tax profit of almost $3.6 billion in the third quarter, up 27% year on year and largely in line with consensus forecasts. Net profit came in at $2.7 billion, in line with estimates.
Wealth inflows and capital strength
Strong inflows into global wealth management supported the quarter. Net new assets reached $55.1 billion by the end of the period. UBS also recorded $12.5 billion in client commitments across its wealth management and asset management businesses.
The bank's common equity tier 1 capital ratio, a measure of solvency, reached 14.7%, up from 14.4% in the previous quarter. Reuters reported that the net new assets in wealth management were driven by inflows of $18 billion in Asia and $17 billion in the Americas.
Credit Suisse integration and cost savings
In its earnings statement, UBS said the Credit Suisse integration is firmly on track to finish by year-end. The bank expects cumulative cost savings of $13.7 billion, above earlier expectations of $13.5 billion.
Staff levels dropped by almost 1,500 full-time employees in the quarter as integration progressed, according to Reuters. The bank's cost-income ratio fell to 72.3% at the end of the third quarter from 77% a year earlier.
Faster buybacks, but Swiss capital rules loom
Reuters reported that UBS repurchased $1.8 billion of shares in the quarter. It now plans to complete its $3 billion buyback program in February, rather than by the mid-2027 timeline it announced previously.
However, the bank has conditioned the amount and pace of buybacks on the outcome of a Swiss banking rules overhaul. New capital rules are being debated in a Swiss parliamentary committee and are expected to reach the lower house floor in December.
Sources: CNBC, Investing.com (Reuters)
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