UBS on Tuesday reported a 24% fall in third-quarter net profit on a decline in market activity, although it beat expectations due to a rise in new money inflows.
Its shares were indicated to start 1% higher.
The Swiss bank posted a net profit attributable to shareholders of $1.73 billion, outpacing the $1.53 billion forecast by 17 analysts in a company-gathered consensus.
Revenue came in at $8.2 billion, a marked drop from previous quarters this year.
The collapse of financial markets depressed fee income linked to wealth under management while client uncertainty reduced trading revenues. On the other hand, rising interest rates brought more money into the bank’s coffers.
UBS saw a strong inflow of new money, attracting $17 billion in net new fee generating assets in wealth management and $18 billion of net new money in asset management.
UBS said it is targeting share buybacks of around $5.5 billion this year.
It had said in September it planned to increase its dividend by 10% and expected 2022 share repurchases to exceed its $5 billion goal, boosting payouts from its strong balance sheet after scrapping a $1.4 billion deal to buy U.S. group Wealthfront, an automated wealth management provider.
“We remain confident in our ability to deliver attractive and sustainable capital returns to shareholders,” Chief Executive Ralph Hamers said in a statement.
The results follow a mixed quarter for big U.S. banks. HSBC, also reporting on Tuesday, said profits slid 42% in the third quarter due to rising loan losses and asset sales.
Rival Credit Suisse reports on Thursday, when it is also due to unveil details of strategic overhaul.
Comments are closed.