UBS Group AG’s UBS, -3.01% third-quarter net profit rose significantly on the year, supported by the strong performance of its investment bank, the Swiss bank said ahead of its investor day Thursday.
Net profit for the period rose roughly 32% on year to 1.25 billion Swiss francs ($1.25 billion), it said, while operating income increased to CHF7.28 billion compared with CHF7.15 billion a year earlier.
Analysts had expected net profit to stand at CHF993 million and had forecast adjusted operating income of CHF7.22 billion, according to a consensus forecast provided by the bank.
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The Swiss banking giant said that "geopolitical tensions, rising protectionism and trade disputes have further dampened investor sentiment and confidence." It expects this to "continue to impact Global Wealth Management clients’ transaction activity in the fourth quarter."
Adjusted pre-tax profit at the bank’s investment-banking division rose roughly 44% on year, it said.
"Our results for the quarter once again highlight the benefits of our diversification. They also demonstrate that we are pursuing a focused strategy in each of our business divisions, creating value for our clients and shareholders," Chief Executive Sergio Ermotti said.
The Swiss banking giant released the results ahead of its investor day. It also outlined certain financial targets, including a return for the group on CET1 capital of about 17% in 2021.
"We are taking actions to grow profits efficiently and UBS is strongly positioned to benefit from several secular growth trends," Mr. Ermotti said.
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