UBS Exceeds Expectations – Upward Trend Despite Challenges

The Swiss banking giant UBS achieved a net profit of $1.4 billion in the third quarter, surpassing analysts' expectations. In the same quarter of the previous year, the bank had to accept a loss of $715 million, which was due to the forced acquisition of the competitor Credit Suisse. Now, UBS was able to increase revenues by five percent to $12.3 billion. Analysts from the Swiss agency AWP had forecasted a profit of $758 million with revenues of $11.5 billion. Initially, UBS shares rose more than two percent in morning trading but then fell by almost three percent. The bank stated that current conditions in the fourth quarter are likely to persist given an expected soft landing of the US economy. However, UBS emphasized that the macroeconomic outlook for the rest of the world is less optimistic. Uncertainties due to geopolitical conflicts and the upcoming US election could influence investor behavior. In wealth management, revenues increased by four percent and in investment banking by 22 percent. Additionally, UBS achieved additional savings of $800 million in the quarter, putting it "ahead of schedule for the financial and operational integration of Credit Suisse." Zurich Cantonal Bank analyst Michael Klien commented that UBS appears to be one step ahead in terms of cost reduction plans. The goal of saving a total of $13 billion by the end of 2026 remains unchanged. The integration of the former rival continues to be a massive task. UBS has begun country-specific migration of customer data and plans to transfer the majority of the Swiss retail division next year. The next major challenge is the migration of data from 1.3 million customers, warned Vontobel analyst Andreas Venditti. However, the first wave of customer migration has been successfully completed, and the bank is (so far) ahead of schedule on manageable issues.