November 29, 2022

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UBS earnings for the third quarter of 2022

UBS earnings for the third quarter of 2022

UBS announces its latest earnings

Cloth Coverini | AFP | Getty Images

UBS On Tuesday, it reported net income of $1.7 billion for the third quarter of this year, slightly above analysts’ expectations, with the Swiss bank citing a challenging environment.

Analysts expected a net profit of $1.64 billion, according to Refinitiv data. UBS reported net income of $2.3 billion a year ago.

The Swiss lender missed expectations in the last quarter When it posted a net profit of $2.108 billion. The bank said at the time that the second quarter was “one of the… The most challenging period“Due to high inflation, the war in Ukraine and strict COVID-19 policies in Asia,” he told investors in the past 10 years.

UBS said Tuesday that those factors are still on investors’ minds in the third quarter.

“The macroeconomic and geopolitical environment is becoming increasingly complex. Clients remain concerned about persistently high inflation, high energy prices, the war in Ukraine and the remaining effects of the pandemic,” UBS CEO Ralph Hammers said in a statement.

Other highlights of this quarter include:

  • Revenue was $8.3 billion, down from $9.1 billion a year ago.
  • Operating expenses fell to $5.9 billion from $6.2 billion a year earlier.
  • Tier 1 capital ratio, a measure of a bank’s solvency, was 14.4%, down from 14.9% a year earlier.

The Investment Banking division saw revenue decline 19% with lower performance in equity derivatives, cash equities and financing income offset by revenue from foreign exchange. The global wealth management division also reported a 4% year-over-year revenue decline.

However, retail and corporate banking revenue rose during the same period on the basis of more interest rates than the Swiss National Bank.

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UBS shares are down about 8% so far this year.