UBS Turns To Profit In Q3, Beats Market, Despite Weak Net Interest Income

UBS

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Kaufen / Verkaufen

(RTTNews) - Swiss banking major UBS Group AG (UBS) reported Wednesday that its third-quarter net profit attributable to shareholders was $1.43 billion, compared to last year's revised loss of $715 million.

Earnings per share were $0.43, compared to prior year's loss of $0.22 per share.

Analysts on average expected the company to report earnings of $0.35 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Operating profit before tax was $1.93 billion, compared to loss of $184 million a year earlier.

Underlying profit before tax was $2.39 billion, compared to $914 million a year ago.

Group operating expenses decreased 12 percent from last year to $10.28 billion, and underlying operating expenses fell 4 percent amid integration and efficiency plans.

Total revenues for the quarter were $12.33 billion, a growth of 5 percent from last year's $11.70 billion.

On an underlying basis, revenues increased 9 percent from the previous year to $11.67 billion, as strong transactional activity and recurring fee income more than offset the expected net interest income headwinds.

Net interest income, meanwhile, declined 15 percent from last year to $1.79 billion.

Looking ahead to the fourth quarter, the company anticipates a mid-single digit decline in net interest income in Global Wealth Management and a low single-digit decline in Personal & Corporate Banking.

Non-core and Legacy is expected to generate a quarterly pre-tax loss in line with earlier guidance.

Further, the Bank said it remains on track to deliver on its ambition of around $100 billion in net new assets or NNA in 2024.

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