Swiss bank UBS posts 24% profit slide but beats analyst expectations

UBS connected Tuesday reported a nett income of $1.7 cardinal for the 3rd 4th of this year, somewhat supra expert expectations, with the Swiss slope citing a challenging environment.

Analysts had expected a nett net of $1.64 billion, according to Refinitiv data. UBS reported a nett income of $2.3 cardinal a twelvemonth ago.

The Swiss lender had missed expectations successful the past quarter when it posted a nett net of $2.108 billion. The slope said astatine the clip the 2nd 4th had been "one of the most challenging periods for investors successful the past 10 years" owed to precocious inflation, the warfare successful Ukraine and strict Covid-19 policies successful Asia.

UBS said Tuesday these factors continued to beryllium successful investors' minds successful the 3rd quarter.

"The macroeconomic and geopolitical situation has go progressively complex. Clients stay acrophobic astir persistently precocious inflation, elevated vigor prices, the warfare successful Ukraine and residual effects of the pandemic," Ralph Hamers, CEO of UBS, said successful a statement.

Other highlights for the 4th include:

• Revenues deed $8.3 billion, down from $9.1 cardinal a twelvemonth ago.
• Operating expenses dropped to $5.9 billion, from $6.2 cardinal a twelvemonth ago.
• CET 1 superior ratio, a measurement of slope solvency, reached 14.4% versus 14.9% a twelvemonth ago.

Its concern banking part saw revenues down by 19% with the little show successful equity derivatives, currency equities, and financing gross being offset by revenues successful overseas exchange. The Global Wealth Management part besides reported little revenues, down by 4% year-on-year.

However, Personal and Corporate Banking revenues roseate implicit the aforesaid play connected much beneficial rates from the Swiss National Bank.

Shares of UBS are down astir 8% truthful acold this year.