UBS surprises with high profit in the summer quarter. The corona crisis has hardly affected the major Swiss bank UBS – on the contrary: it reports the highest profit in a third quarter for five years.
UBS surprises with high profit in the summer quarter
UBS made a high profit in the period from June to September. The largest Swiss bank doubled its surplus in the third quarter to 2.1 billion dollars – significantly more than experts had expected. The departing CEO Sergio Ermotti is saying goodbye with very good business figures.
The proceeds from the sale of the fund distribution platform Fondscenter to Deutsche Börse were also responsible for the surprisingly high profit. But day-to-day business also went better than expected, mainly because many customers continued to be very active and thus gave the bank commission fees.
Business at UBS was particularly good in asset management, in business with professional investors such as pension funds and in investment banking. Only in business with Swiss private and corporate customers did the institute earn less than a year ago. The allowance was down from the previous quarter to $ 89 million. At $ 2.6 billion, UBS achieved the highest pre-tax profit in a third quarter in ten years.
US investment banks such as Morgan Stanley, JPMorgan and Goldman Sachs had already benefited from the boom on the stock markets in the summer. Deutsche Bank also expects investment banking to have grown. The institute will announce the results for the third quarter on October 28th.
UBS boss Ermotti leaves the bank much more stable than he found it in 2011. The institute also demonstrated this during the corona pandemic. The worst economic crisis in decades has hardly reduced their business. During his time as CEO, Ermotti reduced the risky trading business and primarily focused on the less fluctuating business with the rich and the super-rich. Now he is switching to reinsurer Swiss Re. The Dutchman Ralph Hamers will be at the helm of UBS.
Source for UBS surprises with high profit in the summer quarter: https://www.spiegel.de/wirtschaft/unternehmen/grossbank-ubs-ueberrascht-mit-hohem-gewinn-im-sommerquartal-a-c6ea3793-0227-4e8b-907f-7f2e7816e30c