Profit statements

UBS posts higher profit in the third quarter, helped by new money inflows

ZURICH, Oct 25 (Reuters) – UBS (UBSG.S) posted a weaker-than-expected 24% drop in third-quarter net profit, with robust customer inflows and lower costs helping to cushion the impact turbulent financial markets.

The Swiss bank attracted $17 billion in fee-earning net new assets in wealth management and $18 billion in net new assets in asset management, with strong performances across all major regions.

“The focus in the results should be on Wealth Management’s very positive net inflows, ZKB analysts said.

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UBS shares jumped 4.9% in early trading.

Net income attributable to shareholders fell to $1.73 billion, ahead of the $1.53 billion forecast by 17 analysts in a consensus assembled by the company.

Revenue was $8.2 billion, down 10% from the same quarter a year earlier.

The investment bank has been hit particularly hard by the financial market turmoil, with revenue from its global banking division, which advises on transactions and capital raisings, falling 58%. However, global market revenues were only down 1% as derivatives benefited from increased volatility, including on currencies.

UBS also said it is targeting share buybacks of around $5.5 billion this year.

It had said in September that it planned to increase its dividend by 10% and expected 2022 share buybacks to exceed its $5 billion target, boosting payouts from its strong balance sheet after giving up. a $1.4 billion deal to buy US-based Wealthfront Group, an automated wealth management provider. .

“We remain confident in our ability to deliver attractive and sustainable capital returns to shareholders,” Chief Executive Ralph Hamers said in a statement.

The results follow a mixed quarter for major US banks.

HSBC (HSBA.L), also reporting on Tuesday, said profits fell 42% in the third quarter due to higher loan losses and asset sales. Rival Credit Suisse (CSGN.S) reports on Thursday, as it is also due to unveil details of the strategic overhaul.

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Reporting by Noele Illien; Editing by Michael Shields and Edwina Gibbs

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