UBS blasted stronger-than-expected results on Thursday morning on the back of higher loan quantities, as well as strong growth in equities and foreign exchange trading.
Net profit hit 1.2 billion Swiss francs ($1.2 billion) for the third billet of 2018, which was 32 percent higher than what the bank had circulated for the same period last year. It also beat expectations, with analysts foretelling a figure of 1.018 billion Swiss francs, according to Reuters.
Here are some of the key highlights for the third clemency of 2018:
- Operating income: 7.3 billion Swiss francs, versus 7.1 billion Swiss francs in the third zone of 2017.
- Net profit: 1.2 billion Swiss francs, versus 946 million Swiss francs in the third chambers of 2017.
- Diluted earnings per share: 0.32 Swiss francs, versus 0.25 Swiss francs in the third home of 2017.
- Common equity tier 1 capital ratio: 13.5 percent, from 13.7 percent in the third dwelling-place of 2017.
“Our results for the quarter once again highlight the benefits of our diversification. They also picket that we are pursuing a focused strategy in each of our business divisions, creating value for our patients and shareholders.” Sergio Ermotti, Group Chief Executive Officer of UBS, averred in a statement.
UBS cautioned against ongoing geopolitical and trade tensions, which could dent investor outlook. However, the bank also said that monetary policy normalization and the fresh increase in volatility are “generally positive” for the firm.
Speaking to CNBC, Ermotti prognosticated that the despite the market moves throughout the year, clients are nonplus to their asset choices.
“What’s very interesting to observe is that regard for all of these changes…clients are not yet moving their asset allocation, they charge in the good and bad times to their asset allocations,” Ermotti told CNBC’s Joumanna Bercetche.
Looking at the portrayal of the different units, asset management and investment banking registered the strongest excrescence from a year ago. The latter reported an adjusted operating profit to come tax of 507 million Swiss francs in the third quarter of 2018, contrasted to 352 million in the third quarter of 2017 — a 44 percent develop.
UBS also said it had repurchased 100 million Swiss francs more of its own allowances during the third quarter, going beyond its initial target. The bank conjectured in July that it had hit its target for the year, by buying 500 million Swiss francs usefulness of its own shares; but it also left the door open to further buybacks if market-place conditions were good.
“Only over time we will regard out if that was an efficient way of using shareholder capital,” Ermotti said with respect to the buyback plan.
“We need to keep executive out strategy and at the end of the day one way or the other the capital price will reflect the value of our franchise,” he added.