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UBS has crushed analyst expectations within the third quarter as its wealth administration division continued to outperform.
The Swiss financial institution on Tuesday reported internet profit attributable to shareholders of $2.3 billion for the interval, up from $2 billion within the second quarter. Analysts had anticipated the determine to come back in at $1.57 billion, in keeping with estimates collected by Refinitiv.
It marks a 9% enhance in internet profit from the identical interval a 12 months earlier than.
Describing the most recent quarter, CEO Ralph Hamers advised CNBC Tuesday: “There is continued momentum in the markets. We are getting more clients, clients are looking for alternative investments — we have been able to support them through the ecosystem of opportunities.”
The financial institution’s wealth administration division supplied a big enhance to its outcomes as soon as once more, with invested belongings rising to $3.2 trillion. The division’s profit earlier than tax elevated 43% to $1.5 billion.
Here are different highlights for the third quarter:
- CET 1 ratio, a measure of financial institution solvency, reached 14.9% versus 14.5% within the earlier three months.
- Operating earnings got here in at $9.1 billion versus $9 billion within the earlier quarter.
- Return on fairness, a measure of economic efficiency, stood at 15.3% from 13.7% within the second quarter.
Shares within the financial institution are round larger by about 24% year-to-date.
Going ahead, Hamers stated he expects additional enterprise exercise to assist the financial institution.
“We do expect, on the M&A side, on the advisory side, and even on the equity capital markets side, it continues momentum there — investors are still seeking to invest,” Hamers advised CNBC’s Geoff Cutmore.
“We expect them to stay constructive for the foreseeable couple of months.”
On the crypto sidelines
When it involves crypto, which has gained in recognition as some traders search for sizeable and quick returns, Hamers stated there was nonetheless an excessive amount of uncertainty for the financial institution to supply these merchandise to their purchasers.
“At this moment, we stay on the sidelines there,” the UBS CEO stated. “We feel that the market hasn’t really come to a point where people truly understand the underlying factors that influence the value of some of these cryptocurrencies.”