UBS reported pre-tax profit of almost $3.6 billion in the third quarter, up 27 percent year over year, largely matching analyst expectations. Net profit came in at $2.7 billion for the period, in line with estimates. The strong results reflected robust performance across the Swiss banking and asset management group's businesses, particularly in wealth management where the bank attracted substantial new money from clients.
The lender's global wealth management division saw net new assets reach $55.1 billion by the end of the quarter, demonstrating continued client confidence. The bank also recorded $12.5 billion in client commitments across its wealth management and asset management businesses. The bank's common equity tier 1 capital ratio, a key measure of solvency, strengthened to 14.7 percent during the period from 14.4 percent in the previous quarter, reinforcing its financial position.
UBS said the integration of Credit Suisse, which it acquired in 2023, remains "firmly on track" to be completed by year-end. The bank is now projecting cumulative cost savings from the integration of $13.7 billion, exceeding earlier expectations of $13.5 billion. UBS shares have gained around a quarter in value over the year to date.
The bank continues to clash with Swiss authorities over capital buffer requirements. The country's upper house of parliament voted last month to require UBS to hold 90 percent of common equity tier 1 capital as collateral to support its foreign subsidiaries, roughly $16 billion in extra shares. This represents a significant increase from the current level of around 45 percent. UBS, which chief executive Colm Kelleher described as systemically important to the Swiss economy, has argued the requirement should be capped at 50 percent. "90% would not, long-term, allow us to be a competitive player," Kelleher told CNBC. "I'm very concerned about this development."
UBS said its strong diversified global business model underpinned the quarter's performance. Kelleher stated the bank remains "strategically committed to its diversified business model and its global and regional footprint." The results come as the bank balances demonstrating profitability with navigating ongoing regulatory demands from Swiss policymakers determined to prevent future banking crises.