Q3: UBS posts $2.7 billion profit
UBS recorded a net profit of $2.7 billion (CHF2.2 billion) between July and September. The bank is on track to meet its annual targets and complete the integration of Credit Suisse this year, it said on Wednesday.
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Q3: UBS posts $2.7 billion profit
Profit before tax reached $3.6 billion in the third quarter, and $4.1 billion on a like-for-like basis, representing year-on-year increases of 27% and 14%, respectively.
The bank benefited from strong client momentum across its various market segments. Operating income rose by 5% to $13.35 billion. On a like-for-like basis, the increase was 10% to $13.39 billion, UBS said.
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In wealth management, new money inflows reached $55.1 billion in the third quarter. Growth was driven by the Asia-Pacific region and the Americas.
Shareholders already have reason to be pleased, as the Common Equity Tier 1 (CET1) ratio and the CET1 leverage ratio stand at 14.7% and 4.6%, respectively, paving the way for a dividend increase of around 15% and the implementation of the $3 billion share buyback programme by the time the results for the final interim period of 2026 are published.
The annual targets are within reach. Following a return on Common Equity Tier 1 (RoCET1) of 16.7% on an underlying nine-month basis (or 14.8% unadjusted), UBS believes it is on track to exceed its 2026 target, which stood at around 15% . Meanwhile, the cost-to-income ratio, which stood at 69.6% between January and September, is expected to be in line with expectations (below 70 per cent) for the full year.
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The results are in line with expectations, with both adjusted and unadjusted operating income, as well as adjusted pre-tax profit, even exceeding the AWP consensus estimates.
Furthermore, UBS is on track to finalise the integration of its former rival Credit Suisse by the end of the year. Additional cost savings of $0.6 billion were realised in the third-quarter results, bringing total gross savings to $13.2 billion. By the end of 2026, UBS expects to have achieved savings of $13.7 billion, compared with the $13.5 billion previously forecast.
A number of macroeconomic, political and geopolitical factors will weigh on investor confidence in the final quarterly results.
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Translated from French, reviewed by an English Department journalist.
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