2 weeks Ago
ZURICH: UBS Group on Wednesday reported a net profit of $1.4 billion in the third quarter as the Swiss bank carried out its first wave of client migrations from Credit Suisse since taking over its longtime rival last year. The net profit attributable to shareholders for Switzerland's largest bank compared with the $740 million forecast by analysts in a company-provided poll.
The bank also reported group total revenue of $12.3 billion, which compared with the consensus figure of $11.5 billion.
"Against a market backdrop that, while constructive, still exhibited periods of high volatility and dislocation, our business delivered impressive revenue growth as we maintained strong client momentum, particularly in the Americas and APAC," UBS CEO Sergio Ermotti said in a statement. "We continue to significantly mitigate execution risk as we progress on the integration of Credit Suisse while remaining disciplined in driving our cost and efficiency targets." In May, UBS formally completed the merger with its long-time rival Credit Suisse, which collapsed last year following a string of financial setbacks and scandals.
UBS is pushing ahead with the integration of Credit Suisse, and Ermotti said last month the bank was running ahead of schedule with its efforts to cut costs and absorb its old rival. The bank recently began migrating clients from Credit Suisse onto its own platforms, a process that Ermotti last week said would likely take about 18 months. UBS said it had successfully completed the first wave of client account migrations with transfers in Luxembourg and Hong Kong during October and that Singapore and Japan were expected by year-end.
Switzerland would follow next year, it added. Investors have welcomed the takeover, with UBS shares up well over 60% since it bought Credit Suisse in March 2023. - Reuters.
