UBS posts third-quarter loss of 0.8 billion dollars
Published: Tuesday, Nov 7th 2023, 07:10
Updated At: Wednesday, Nov 8th 2023, 00:53
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UBS suffered a high loss in the third quarter of 2023. Adjusted for integration costs, however, a significant pre-tax profit emerged. The big bank had only forecast a break-even adjusted pre-tax result.
The new UBS Group posted a net loss of 785 million US dollars in the third quarter, as announced on Tuesday. This quarter is the first in which CS is fully included. In the second quarter, only June was included in the UBS financial statements.
UBS reported a pre-tax loss of 255 million for the third quarter. Adjusted - without the costs of the CS integration - the result was plus 844 million. Adjusted for takeover effects, pre-tax profit at Group level amounted to 1.1 billion dollars in the previous quarter.
Net inflows at CS
The situation at Credit Suisse has stabilized further, according to a statement. For the first time since the first quarter of 2022, new money inflows were generated again in a quarter in CS's wealth management business, according to the statement. The bank spoke of its efforts to recover assets from CS clients.
Overall, the UBS Group acquired net new money of 22 billion dollars in its core business, global wealth management, in the third quarter. At the end of September, UBS thus managed assets totaling 5373 billion dollars at overall bank level. At the end of June, the figure was 5530 billion dollars.
Uncertain economic situation
UBS CEO Sergio Ermotti expressed his satisfaction that the bank achieved a positive result on an adjusted basis in the first full quarter since the takeover of CS. "We look to the future with confidence as we build an even stronger and more secure UBS that all key stakeholders can be proud of."
Meanwhile, UBS is cautious with regard to the market environment. The outlook for economic growth, asset valuations and market volatility remains difficult to assess, it says. And the ongoing geopolitical tensions, particularly the conflicts in the Middle East and Ukraine, are adding to the uncertainty surrounding the economic outlook.
In addition to the normal seasonal factors in the Christmas quarter, this is likely to have an impact on customer transaction volumes. At the same time, however, the bank also assumes that customers will shift their cash deposits into higher-yielding investments, which means that net interest income for the current fourth quarter is expected to be on a par with the previous quarter.
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