The logo of UBS’s flagship office on Tuesday, March 21, 2023 in New York, United States.
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swiss banking giant UBS The company’s profits jumped on Wednesday after completing the first wave of customer migrations following the integration of collapsed national rival Credit Suisse.
Net profit to shareholders was $1.43 billion, compared with the average forecast of $667.5 million in an LSEG analyst survey.
Group revenue was US$12.33 billion, higher than analysts’ expectations of nearly US$11.78 billion.
Other highlights from Season 3 include:
- Operating profit before tax was $1.93 billion, up from a loss of $184 million in the same period last year.
- Return on tangible equity reached 7.3%, compared with 5.9% in the second quarter.
- The CET 1 capital ratio, a measure of bank solvency, was 14.3%, down from 14.9% in the second quarter.
The bank said it expects to complete a planned $1 billion share repurchase program in the fourth quarter and intends to continue buybacks in 2025.
UBS, which turned a profit in the first quarter of 2024 after two quarters of losses during its acquisition of troubled Credit Suisse, is now complete but remains in trouble. OECD warning The Swiss economy faces “new risks and challenges” and the government is concerned about the resulting capital requirements for banking giants. UBS argued that it was not “too big to fail.”
The banking alliance prompted UBS to cut expenses, and the banking giant said in its second-quarter earnings report that it expects cumulative savings from the Credit Suisse deal to reach $7 billion by the end of 2024, far exceeding the $13 billion in 2026. Target.
UBS still faces the daunting task of integrating its IT systems with those of Credit Suisse and migrating clients – the latter transition is expected to take around 18 months, Reuters reports earlier this month. The bank said on Wednesday it had completed migrating global wealth management client accounts in Luxembourg and Hong Kong to the UBS platform in October and planned to transfer global wealth management client accounts in Singapore and Japan before the end of the year.
A year and a half since UBS’s hard-fought merger with Credit Suisse, Chief Executive Sergio Ermotti is now tasked with keeping pace with a dual-track landscape shaped by geopolitical volatility, falling interest rates and pressure to keep pace. Charting the bank’s growth trajectory. Domestically, UBS operates within a strong economy. Swiss franc Annual inflation plummets to Only 0.8% in Septemberraising questions about further easing of monetary policy by the Swiss National Bank and the impact of such interventions on the profitability of commercial lenders.
UBS’s results came after Germany’s largest bank, Deutsche Bank, reported a profit-beating forecast last Wednesday, and followed a slew of third-quarter reports this week from European banks including BNP Paribas and Santander.
This breaking news story is being updated.
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