Third-quarter numbers smash expectations at UBS

UBS posted better-than-expected quarterly numbers on Wednesday, after the Swiss bank benefited from a strong performance in the Americas and Asia and an ongoing cost-cutting programme.

Reported revenues in the third quarter were $12.3bn, up 5% year-on-year and comfortably ahead of analyst forecasts for $11.5bn.

Reported pre-tax profits were $1.9bn, against last year’s $184m loss, while net profits were $1.4bn, almost double forecasts for $740m.

Revenue at UBS’s core global wealth management arm rose 4% to $6.2bn, as higher fees income helped offset the falling interest rates. Its investment bank also performed well, however, with operating profits well ahead of forecasts.

Group operating expenses, meanwhile, fell to $10.3bn from $11.6bn.

Chief executive Sergio Ermotti said UBS had seen "strong client momentum" during the quarter, particularly in the Americas and Asia-Pacific.

He continued: "Our performance demonstrates the power of our unique client franchises, global scale and diversified business model.

"Against a backdrop that, while constructive, still exhibited periods of high volatility and dislocation, our businesses delivered impressive revenue growth.

"We continue to significant mitigate execution risk as we progress on the integration of Credit Suisse, while remaining disciplined in driving our cost and efficiency targets."

UBS formally completed the merger with rival Credit Suisse in May. The vast deal was orchestrated by the Swiss authorities after Credit Suisse collapsed following a series of scandals.

Looking ahead, the bank said cost reduction plans remained firmly on track. It now expects to achieve around $7.5bn this year, up on previous forecasts for $7bn.

As at 1000 GMT, shares in UBS were up 1% in Zurich.