Despite a start of the year marked by the collapse of the Archegos hedge fund, UBS remains strong in its operations in a health crisis context. In the third quarter of the year, the number one Swiss bank reveals a surprising result, notably by cutting costs. The Zurich group announced on Tuesday that the third quarter net profit amounted to $2.28 billion, an 8.9% growth over the year.
Wealth management fees increased by the largest amount in years, resulting in an unexpected profit increase for Zurich-based bank on most important criteria. While customer activity was at “unusually high levels” in the third quarter, UBS warned that it would slowdown in the following one. The increasing demand for advice on mergers and acquisitions and IPOs fuelled earnings growth.
Markets revenue declined by 7%, reflecting the performance of the Wall Street firms who were unable to equalize their fixed income trading performance from the previous pandemic year.
The bank also signalled that persistent economic, social and geopolitical tensions are raising questions about sustainability of the recovery from Covid-19.