FABRICE COFFRINI | AFP | Getty Photos
UBS has overwhelmed analyst expectations within the third quarter as its wealth administration division continued to outperform.
The Swiss financial institution on Tuesday reported internet revenue attributable to shareholders of $2.3 billion for the interval, up from $2 billion within the second quarter. Analysts had anticipated the determine to return in at $1.57 billion, in keeping with estimates collected by Refinitiv.
It marks a 9% improve in internet revenue from the identical interval a yr earlier than.
Describing the most recent quarter, CEO Ralph Hamers instructed CNBC Tuesday: “There’s continued momentum within the markets. We’re getting extra purchasers, purchasers are searching for different investments — now we have been in a position to help them by the ecosystem of alternatives.”
The financial institution’s wealth administration division offered a big increase to its outcomes as soon as once more, with invested belongings rising to $3.2 trillion. The division’s revenue earlier than tax elevated 43% to $1.5 billion.
Listed below 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.
- Working earnings got here in at $9.1 billion versus $9 billion within the earlier quarter.
- Return on fairness, a measure of monetary efficiency, stood at 15.3% from 13.7% within the second quarter.
Shares within the financial institution are round increased by about 24% year-to-date.
Going ahead, Hamers stated he expects additional enterprise exercise to help the financial institution.
“We do anticipate, on the M&A facet, on the advisory facet, and even on the fairness capital markets facet, it continues momentum there — traders are nonetheless looking for to speculate,” Hamers instructed CNBC’s Geoff Cutmore.
“We anticipate them to remain constructive for the foreseeable couple of months.”
On the crypto sidelines
In relation to 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.
Final week, bitcoin notched a recent all-time excessive as traders cheered the profitable launch of the primary U.S. bitcoin futures exchange-traded fund.
“At this second, we keep on the sidelines there,” the UBS CEO stated. “We really feel that the market hasn’t actually come to some extent the place folks actually perceive the underlying components that affect the worth of a few of these cryptocurrencies.”
