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- UBS made $ 2.1 billion in the third quarter. This corresponds to a doubling compared to the value of the previous year.
- Before taxes, it made a profit of 2.6 billion after 1.4 billion in the corresponding period of the previous year.
- The main reasons for the significant increase in earnings were significantly higher business income and the sale of the Clearstream fund distribution platform.
UBS earned significantly more in the third quarter of 2020 than in the previous year, as the bank announced today. The big bank also clearly beat market expectations and analyst estimates based on the AWP consensus.
I am proud of the contributions our employees make every day, especially in today’s challenging environment.
The sale of the Clearstream fund distribution platform to Deutsche Börse brought UBS an after-tax profit of around $ 600 million to the coffers. The sale of the Commodity Index family and the Geneva real estate also had a positive impact on revenue.
Last quarter of the report under the direction of CEO Ermotti
The reporting quarter is the last under longtime CEO Sergio Ermotti, who will hand over the scepter to his Dutch successor Ralph Hamers at the end of the month. Ermotti was very satisfied with the result and the bank quotes it as follows: “I am proud of the contributions our employees make every day, especially in today’s challenging environment.” The result reflects the continued high level of client activity and the advantages of the diversified business model, continues UBS.
Valuation provisions for credit risks decreased significantly in the third quarter: after a total of 540 million dollars in the first half of the year, they were 89 million. And UBS assumes that the value adjustments in the current fourth quarter will be well below the first half of the year.
UBS attracted 1.4 billion new money
Most of the pre-tax profit comes from its core business, global wealth management (GWM), at $ 1.1 billion. UBS attracted $ 1.4 billion in new money in the quarter under review and, at the end of September, the world’s largest asset manager managed $ 3.807 billion in assets.
As the bank also announced, it wants to request the second tranche of the dividend for 2019 as planned and distribute it in November. And share buybacks stopped due to the crown crisis should resume soon. Furthermore, UBS plans to focus even more on share buybacks in the future.
Further development uncertain
As usual, UBS management is cautious about future developments. The recent increase in the number of Covid cases is causing renewed uncertainty and could affect the recovery path. Rising geopolitical tensions and political uncertainties could also dampen growth prospects. In this context, it is completely open how the situation will develop, writes the bank. Therefore, reliable predictions remain difficult.
