UBS disclosed third-quarter financial results showing pretax profits of $3.59 billion, representing a 27% increase compared to the same period the previous year and aligning with analyst expectations. Net profit for the quarter reached $2.7 billion, matching consensus estimates. The performance was driven largely by robust inflows into the bank’s global wealth management division.
The wealth management business attracted $55.1 billion in net new assets during the quarter, while the combined wealth management and asset management operations recorded $12.5 billion in client commitments. The bank’s common equity tier 1 capital ratio, a key measure of financial strength, improved to 14.7% from 14.4% in the prior quarter.
UBS provided an update on its integration of Credit Suisse, stating the process remained on track for completion by year-end. The bank indicated cumulative cost savings from the merger would total $13.7 billion, exceeding its previous projection of $13.5 billion.
The lender continues negotiations with Swiss authorities regarding capital requirements intended to enhance financial stability. Parliament’s upper house voted last month to require UBS to maintain a 90% Common Equity Tier 1 capital ratio for its foreign subsidiaries, equivalent to approximately $16 billion in additional capital. The current level stands at roughly 45%, while the bank advocates for a 50% threshold, contending that higher requirements would compromise its competitive position in global markets.
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