Switzerland's largest bank reports a rise in quarterly profits. The bank benefited from its business with the super-wealthy and cut its costs.
UBS' third-quarter net profit rose to $2.28 billion in the third quarter, representing a 9 percent on year increase, it said in statement on Tuesday. The bank was able to cut costs by $100 million in the same period last year.
The Swiss bank was cautiously optimistic for the rest of the year citing effects of the pandemic on the economy, supply chains and labor markets. The bank's flagship business, global wealth management's pre-tax profit jumped 43 percent to $1.5 billion. While private bankers took in $19 billion in fresh assets across all regions, in Asia Pacific UBS was hit with $2 billion in outflows.
The investment banking business benefited from strong activity in financial markets this year. Pre-tax profit rose to $837 million, from $632 million year-ago.
Revamp In the Making?
The $3.2 trillion wealth unit’s co-heads, Iqbal Khan and Tom Naratil, are planning another revamp of its business with the super-rich, «Bloomberg» reported late on Monday, citing undisclosed sources.
The duo had initially carved out this unit nearly two years ago in order to better foster its collaboration with UBS’ investment bankers, but are now dissatisfied with how revenue is split between the two businesses, the agency reported.
CEO Ralph Hamers promised a strategic update on February 1. The divide between the two Swiss champions has deepened, with UBS stock gaining 14 percent thus far this year while Credit Suisse has shed more than 15 percent.
