UBS doubled its quarterly net profit on the year, buoyed by disposals including a fund business to Clearstream. The Swiss bank is moving ahead with the second leg of its payout for last year, delayed by the pandemic.

Zurich-based UBS' net profit for the three months to September 31 nearly doubled to $2.09 billion on the year, it said in a statement on Tuesday. The surge in profit in CEO Sergio Ermotti's waning days running the bank was underpinned by a $631 million windfall from the sale of Fondcenter, a platform for funds, in January.

The Swiss wealth manager said it proposes paying the second half of $0.73 per share dividend from last year – held over due to the pandemic – next month. It also signaled its intention to keep rewarding shareholders, saying it had stowed $1 billion through September in order to plan for a 2020 payout.

CEO's Handover

On November 1, Ermotti hands over the reins at UBS to Ralph Hamersthe former long-standing head of ING who is well-known in digitization and innovation circles. Ermotti, who has led UBS since 2011 including through a landmark shift away from riskier parts of investment banking and deeper into wealth management, is poised to preside over Swiss Re.

«UBS has all the options open to write another successful chapter of its history under Ralph’s leadership,» said Ermotti, who is retreating from UBS entirely. Hamers, who has understudied with the Swiss bank's top management for the last eight weeks, has given little indication of his plans for the hidebound lender.

Mild Credit Hit

UBS noted that credit losses – a major worry for its North American rivals – are likely to fall in the four quarter, compared to the first six months. In the third quarter, UBS credit loss expenses were a relatively mild $89 million, mainly in retail and corporate banking (and a negligible $15 million at its investment bank).

The Swiss bank also flagged $30 million in extra spending next quarter – it plans to pay its rank and file an extra salary equivalent to one week's pay in cash, it said. The gesture is to demonstrate the bank's appreciation of its employees, and «acknowledging that the pandemic may have resulted in unexpected financial impact,» UBS said.