UBS meets expectations with $2.7 billion Q3 profit

ZURICH - UBS announced a strong third-quarter profit of $2.69 billion on Wednesday, marking an 8% increase compared to the previous year and aligning closely with the company's consensus forecast of $2.71 billion. The Swiss bank's success was attributed to net new assets of $55 billion in global wealth management, bolstered by inflows of $18 billion from Asia and $17 billion from the Americas.

UBS also reported enhanced profitability in the Americas, with a profit-before-tax margin rising by more than 2 percentage points. The integration of Credit Suisse, once a rival, is projected to be finalized by the end of the year, with cumulative cost savings anticipated at around $13.7 billion by the end of 2026, up from an initial estimate of $13.5 billion.

In the quarter, UBS repurchased $1.8 billion of shares and intends to complete its share buyback program of $3 billion in February, a change from the previously stated mid-2027 timeline. The bank's decision on the number and pace of share buybacks depends on the outcome of a Swiss banking rules overhaul following the 2023 Credit Suisse collapse and its subsequent emergency takeover by UBS.

New capital rules for UBS are currently under debate in a parliamentary committee, with an expected vote in the lower house by December. The Swiss upper house recently proposed rules that UBS deemed unacceptable, and the bank's chairman has cautioned that harsh capital requirements could impact the bank's future in Switzerland. Shareholders have also called for UBS to consider leaving the country.

UBS expressed hope that parliament will reach a solution that maintains Switzerland's financial stability without imposing excessive costs on the bank's shareholders, clients, and employees.