UBS said today its third-quarter net profit surged 74%, comfortably beating expectations as revenue shot higher on financial market volatility caused by global tariff turmoil as well as renewed M&A activity.
Switzerland's largest bank also said it was confident in its plans for $3 billion in share buybacks this year as well as its financial targets for 2026.
It noted, however, that macro uncertainties, a strong Swiss franc and higher US tariffs were clouding the outlook for the Swiss economy.
UBS expects deal activity to remain healthy in the fourth quarter, but said "sentiment can shift quickly as confidence in the outlook is tested."
A prolonged US government shutdown could delay capital market activities, it added.
UBS also said it intends to appeal a Swiss court decision, already challenged by Swiss market regulator FINMA, that the writing off of 16.5 billion Swiss francs in Credit Suisse bonds was unlawful. The bank has no plans to make any provisions in relation to the case, UBS said.
Its net profit came in at $2.5 billion. That trumped a consensus estimate of $1.29 billion and marked its best result since one-off factors related to the integration of former rival Credit Suisse led to a profit of over $27 billion in the second quarter of 2023.
A release of legal provisions worth $688m also contributed to the earnings beat. They were mainly related to the resolution of Credit Suisse's residential mortgage-backed securities business and a UBS case in France.
UBS attracted $38 billion in net new money to its global wealth management division and $18 billion to asset management, bringing total invested assets close to $7 trillion.
Strong inflows from Asia more than offset outflows in the Americas, where UBS this week applied for a US banking licence.
In UBS's investment banking division, revenues jumped 52% year-on-year in global banking and 14% in trading, marking a record third quarter for both these business areas as deal-making activity resumed.
Integration of Credit Suisse further progressed, UBS said, adding that over two-thirds of Swiss-booked client accounts have been migrated.
