UBS reviews its newest earnings
FABRICE COFFRINI | AFP | Getty Photographs
UBS on Tuesday reported a internet earnings of $1.7 billion for the third quarter of this yr, barely above analyst expectations, with the Swiss financial institution citing a difficult surroundings.
Analysts had anticipated a internet revenue of $1.64 billion, in keeping with Refinitiv knowledge. UBS reported a internet earnings of $2.3 billion a yr in the past.
The Swiss lender had missed expectations within the final quarter when it posted a internet revenue of $2.108 billion. The financial institution mentioned on the time the second quarter had been “probably the most difficult intervals for buyers within the final 10 years” as a consequence of excessive inflation, the battle in Ukraine and strict Covid-19 insurance policies in Asia.
UBS mentioned Tuesday these elements continued to be in buyers’ minds within the third quarter.
“The macroeconomic and geopolitical surroundings has develop into more and more complicated. Shoppers stay involved about persistently excessive inflation, elevated vitality costs, the battle in Ukraine and residual results of the pandemic,” Ralph Hamers, CEO of UBS, mentioned in a press release.
Different highlights for the quarter embrace:
- Revenues hit $8.3 billion, down from $9.1 billion a yr in the past.
- Working bills dropped to $5.9 billion, from $6.2 billion a yr in the past.
- CET 1 capital ratio, a measure of financial institution solvency, reached 14.4% versus 14.9% a yr in the past.
Its funding banking division noticed revenues down by 19% with the decrease efficiency in fairness derivatives, money equities, and financing income being offset by revenues in overseas change. The International Wealth Administration division additionally reported decrease revenues, down by 4% year-on-year.
Nonetheless, Private and Company Banking revenues rose over the identical interval on extra useful charges from the Swiss Nationwide Financial institution.
Shares of UBS are down about 8% thus far this yr.