UBS reports 99% rise in third quarter profit, smashes expectations

UBS on Tuesday posted a 99 per cent jump in third-quarter (Q3) profit on heavy turnover in global markets, helping the bank to a strong performance in investment banking as well as an unexpected rise in earnings for wealth management.
 

Net profit for the world’s largest wealth manager clim-bed to $2.1 billion for the July-September period, surpassing by a wide margin expectations for $1.557 billion in the bank’s poll of 22 analysts.
 

“Our third quarter results continue to demonstrate that our strategy is differentiating us as we continuously adapt and accelerate the pace of change,” Chief Executive Sergio Ermotti said in his last month at the helm of Switzerland's biggest bank. He is due to be replaced in November by former ING head Ralph Hamers.
 

The sharp rise for Europe's first major lender to report Q3 results follows a mixed performance of big US banks that saw those focussed on trading clocking big gains while retail banks taking hit from the pandemic. UBS’ investment banking division saw pre-tax profit jump 268 per cent during the quarter. 
          

UBS lines up $1.5 billion for buybacks

The UBS Group set aside $1.5 billion for share buybacks next year as Chief Executive Officer Sergio Ermotti prepares to hand over to Ralph Hamers. The Zurich-based wealth manager followed US banks in reporting earnings that benefited from increased market volatility and higher transaction-based income. Bloomberg