UBS Posts Rise In Q3 Profit

UBS AG

reported a gain in its third-quarter profit. UBS posted a quarterly profit of 762 million francs, versus a year-ago profit of 577 million francs. Its operating income climbed to 6.88 billion francs versus 6.26 billion francs. However, analysts were estimating a profit of 787 million francs. The company booked 1.8 billion Swiss francs ($1.9 billion) in legal provisions during the quarter. The latest quarter results included CHF 1.3 billion in net tax benefit reflecting annual revaluation of deferred tax assets. The company's total operating expenses rose26% y/y. Its wealth management pretax operating profit climbed 27% to 707 million francs, while earnings at wealth management Americas jumped 17% to 236 million francs. Its net new money climbed to 9.8 billion francs. Its revenue in the corporate client solutions unit gained 46% to 738 million francs. Its investment bank reported a pretax operating loss of 1.28 billion francs, versus a year-ago profit of 251 million francs. Group Chief Executive Officer Sergio P. Ermotti said, "I am very pleased with our underlying performance for the quarter, which again demonstrates the strength of our franchise. At the same time, we are actively addressing litigation and regulatory matters. Three years since introducing our strategy, the business is far stronger, its earnings power is much greater and our absolute and relative capital position speaks for itself. That gives us every confidence in our ability to deliver on our capital returns policy." UBS shares fell 1.34% to close at $16.23 yesterday.