UBS Group AG reported progress toward its cost savings target and improved financial performance in the third quarter. The Zurich-based bank posted an operating profit of $1.93 billion, reversing a loss of $184 million a year ago. Attributable net profit more than doubled to $1.43 billion from $715 million, with total revenue rising 5.4% to $12.33 billion.
UBS welcomes impressive revenue growth
CEO Sergio Ermotti noted strong revenue growth despite market volatility, particularly in the Americas and Asia Pacific, as the bank continues to integrate Credit Suisse while focusing on cost efficiency. Return on tangible equity improved to 7.3% from negative 3.7% a year prior, and the CET1 capital ratio rose to 14.3% from 14.1%.
UBS experienced strong transactional activity across private and institutional clients. In Global Wealth Management, transaction-based income increased by 19%, leading to a 4% revenue rise to $6.20 billion. In Investment Banking, revenue grew by 22% to $2.65 billion, driven by higher Global Markets and Global Banking revenue.
The bank achieved an additional $0.8 billion in cost savings, bringing its total savings target to $7.5 billion by the end of 2024, or 58% of its goal. UBS is also progressing in migrating wealth management client accounts to its platforms, aiming for $13 billion in savings by the end of 2026.
Future estimates
Looking ahead, UBS plans to complete $1 billion in share repurchases in Q4 2024 and expects a mid-single-digit decline in net interest income in Global Wealth Management for the fourth quarter. Non-personnel costs are anticipated to rise seasonally, with integration-related expenses around $1.2 billion.
