UBS' third-quarter profit jumped by nearly one-third, helped by big spending cuts. The Swiss bank was cautious for the rest of the year for its heavyweight wealth arm.
The Zurich-based bank said net profit for the three months ended September 30 climbed to 1.246 billion Swiss francs ($1.25 billion) from 946 billion francs in the year-ago period, the bank said on Thursday.
The rise was fuelled by a 5 percent spending cut, while revenue rose just 2 percent. UBS said that tensions in the world, the specter of a trade war, and the rise of protectionism would dampen business for its flagship private bank.
Investment Bank Surge
Profits before tax at UBS' investment bank surged by 44 percent on the year, with powered by standout showing from UBS' advisory arm. The investment bank, which lost its boss Andrea Orcel to Santander last month, was also strong in both equities and fixed income in all regions the bank is active in.
By contrast, the bank was marginally weaker in its other divisions: private banking, asset management, and corporate clients in Switzerland.
Weaker Private Bank
Net new money at the flagship private bank, merged in January, was just 13.5 billion francs, which corresponds to 2.3 percent growth in net new money. The unit is expected to be the focus on an investor day UBS is also holding on Thursday.
The bank said it has bought back 650 million francs worth of its own shares (it had projected 550 million francs for this year, part of an up to 2 billion franc total).
