Swiss banking giant, UBS, reported on Wednesday that it achieved a better-than-anticipated net profit in the third quarter, with robust investment banking performance and the disclosure of legal provisions.
The three-month period recorded net profit attributable to the shareholders of 2.5 billion, an increase of 74 percent from the $1.43 billion recorded within the same period last year.
LSEG-compiled consensus stated that analysts had been expecting third-quarter net profit of $1.85 billion.
The net profit of Switzerland’s largest bank comprised net litigation reserve releases of $668 million in 2011, and this was mainly because of resolving legal issues surrounding Credit Suisse’s residential mortgage-backed securities business and its legacy cross-border activities in France.
In a statement, UBS CEO Sergio Ermotti said that “We delivered an excellent 3Q25 financial performance powered by significant momentum in our core businesses and disciplined execution of our strategic priorities.”
UBS reported a third-quarter revenue of $12.76 billion, slightly higher than the predicted revenue of analysts at $12.68 billion.
Therefore, wealth management has attracted a net inflow of new assets of $38 billion in the third quarter.
These outcomes come after the UBS continues to navigate the complicated integration of Credit Suisse, with the Zurich-based bank likely to finish the process by the end of the coming year.
UBS officially finalized the legal acquisition of its domestic competitor as an element of a state-supported rescue plan in 2023.
However, the bank is currently facing the possibility of a major rise in mandatory capital requirements as the government attempts to understand the Credit Suisse meltdown and ensure taxpayers and the economy are protected against risks.
Meanwhile, UBS has stated in June that it backed the majority of the regulatory proposals, as presented by the Swiss Federal Council, but it “strongly disagrees” with what it defines as the “extreme” surge in capital requirements.
The UBS shares have increased by more than 11 percent in the current year.
In the coming days, UBS indicated that the bank is “likely to see more modest sequential gross and net saves in the fourth quarter,” attributing this to the fact that the bank is still working on its Swiss platform migration and a seasonal uptick in non-personnel costs.
