UBS surprises with strong profit jump in the third quarter

UBS achieved a net profit of $1.4 billion in the third quarter, significantly surpassing analysts' forecasts. The Swiss banking giant particularly benefited from increased market volatility and implemented cost reductions in its trading activities. The profit realized was almost twice the expectations of analysts. Revenues rose to $12.3 billion in the quarter, as the institution's wealth management business saw strong inflows. "Amid a market that continued to be characterized by high volatility and disruptions, despite favorable phases, our business units achieved impressive revenue growth and sustained strong momentum with clients, particularly in America and the Asia-Pacific region," CEO Sergio Ermotti stated on Wednesday. UBS is currently in the midst of a three-year integration of Credit Suisse, after the troubled competitor was acquired in a rescue operation initiated by Swiss authorities the previous year. This month, the Swiss financial regulator Finma instructed UBS to strengthen its emergency and recovery plans, in light of the increased risks from the acquisition of Credit Suisse.