Wealth Management Boom Helps Ubs Report $2.3 Billion Profit, Beating Estimates

  • Posted on October 26, 2021
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  • By FC Team
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UBS has beaten analyst expectations in the third quarter as its wealth management division continued to outperform.The Swiss bank on Tuesday reported net profit attributable to shareholders of $2.3 billion for the period, up from $2 billion in the second quarter. Analysts had expected the figure to come in at $1.57 billion, according to estimates collected by Refinitiv.It marks a 9% increase in net profit from the same period a year before.Describing the latest quarter, CEO Ralph Hamers told CNBC Tuesday: “There is continued momentum in the markets. We are getting more clients, clients are looking for alternative investments — we have been able to support them through the ecosystem of opportunities.”The bank’s wealth management division provided a significant boost to its results once again, with invested assets rising to $3.2 trillion. The division’s profit before tax increased 43% to $1.5 billion.Here are other highlights for the third quarter:CET 1 ratio, a measure of bank solvency, reached 14.9% versus 14.5% in the previous three months.Operating income came in at $9.1 billion versus $9 billion in the previous quarter.Return on equity, a measure of financial performance, stood at 15.3% from 13.7% in the second quarter.Shares in the bank are around higher by about 24% year-to-date.Going forward, Hamers said he expects further business activity to support the bank.“We do expect, on the M&A side, on the advisory side, and even on the equity capital markets side, it continues momentum there — investors are still seeking to invest,” Hamers told CNBC’s Geoff Cutmore.worldnews.com“We expect them to stay constructive for the foreseeable couple of months.”

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