UBS Profit Up in Third Quarter
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Switzerland’s largest bank reports a rise in quarterly profits. The bank benefited from its business with the super-wealthy and cut its costs.
UBS’ third-quarter net profit to $2.28 billion in the third quarter, representing a 9 percent on year increase, it said in statement on Tuesday. The bank was able to cut costs to $6.26 billion from $6.36 billion in the same period last year.
The Swiss bank was cautiously optimistic for the rest of the year citing effects of the pandemic on the economy, supply chains and labor markets. The bank’s flagship business, global wealth management’s pre-tax profit climbed to $1.5 billion from $1.3 billion in the second quarter of 2021.
The investment banking business benefited from strong activity in financial markets this year. Pre-tax profit rose to $837 million from $668 million in the second quarter of 2021.
A strategic update is scheduled on February 1. The divide between the two Swiss champions has deepened, with UBS stock gaining 14 percent thus far this year while Credit Suisse has shed more than 15 percent.
Questions & Answers
Q.What contributed most to UBS's increased profit in the third quarter?
What contributed most to UBS's increased profit in the third quarter?
The bank's business with very wealthy clients was a key factor. Its global wealth management unit saw pre-tax profit rise significantly, contributing to the overall increase in quarterly profits.
Q.How did UBS manage to reduce its costs compared to the previous year?
How did UBS manage to reduce its costs compared to the previous year?
UBS cut its costs to $6.26 billion in the third quarter from $6.36 billion in the same period last year. The article does not specify how these savings were achieved, only the resulting figures.
Q.What is the bank's outlook for the remainder of the year?
What is the bank's outlook for the remainder of the year?
UBS is cautiously optimistic for the rest of the year. They cited the ongoing effects of the pandemic on the global economy, supply chains, and labor markets as reasons for this cautious approach.
Q.When can we expect more details about UBS's future plans?
When can we expect more details about UBS's future plans?
A strategic update from UBS is scheduled for February 1. This announcement should provide further insight into the bank's direction and plans following its strong third-quarter performance.
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