Swiss bank UBS posts 24% profit slide but beats analyst expectations

UBS reviews its newest earnings

FABRICE COFFRINI | AFP | Getty Photographs

UBS on Tuesday described a net cash flow of $1.7 billion for the 3rd quarter of this calendar year, slightly higher than analyst anticipations, with the Swiss lender citing a tough setting.

Analysts had anticipated a web financial gain of $1.64 billion, according to Refinitiv details. UBS documented a net income of $2.3 billion a yr ago.

The Swiss lender had missed anticipations in the last quarter when it posted a internet profit of $2.108 billion. The bank stated at the time the second quarter experienced been “one of the most demanding intervals for traders in the past 10 decades” because of to superior inflation, the war in Ukraine and stringent Covid-19 procedures in Asia.

UBS mentioned Tuesday these variables ongoing to be in investors’ minds in the 3rd quarter.

“The macroeconomic and geopolitical natural environment has develop into progressively elaborate. Purchasers keep on being worried about persistently high inflation, elevated energy selling prices, the war in Ukraine and residual consequences of the pandemic,” Ralph Hamers, CEO of UBS, said in a statement.

Other highlights for the quarter include:

  • Revenues strike $8.3 billion, down from $9.1 billion a 12 months ago.
  • Working bills dropped to $5.9 billion, from $6.2 billion a year ago.
  • CET 1 funds ratio, a measure of lender solvency, arrived at 14.4% as opposed to 14.9% a 12 months in the past.

Its investment decision banking division saw revenues down by 19% with the lessen performance in fairness derivatives, dollars equities, and funding income staying offset by revenues in overseas trade. The World Wealth Management division also noted reduced revenues, down by 4% 12 months-on-calendar year.

On the other hand, Private and Corporate Banking revenues rose above the same time period on far more valuable prices from the Swiss Nationwide Bank.

Shares of UBS are down about 8% so much this 12 months.

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