UBS earnings Q3 2022

UBS on Tuesday described a web earnings of $1.7 billion for the 3rd quarter of this calendar year, a little previously mentioned analyst expectations, with the Swiss lender citing a difficult environment.

Analysts experienced expected a internet gain of $1.64 billion, in accordance to Refinitiv knowledge. UBS noted a web money of $2.3 billion a yr in the past.

The Swiss loan provider experienced missed expectations in the last quarter when it posted a internet gain of $2.108 billion. The financial institution mentioned at the time the next quarter experienced been “1 of the most challenging periods for traders in the past 10 many years” owing to substantial inflation, the war in Ukraine and stringent Covid-19 guidelines in Asia.

UBS explained Tuesday these aspects continued to be in investors’ minds in the 3rd quarter.

“The macroeconomic and geopolitical setting has develop into more and more complicated. Purchasers keep on being anxious about persistently superior inflation, elevated strength charges, the war in Ukraine and residual results of the pandemic,” Ralph Hamers, CEO of UBS, mentioned in a statement.

Other highlights for the quarter include:

• Revenues hit $8.3 billion, down from $9.1 billion a calendar year ago.
• Functioning costs dropped to $5.9 billion, from $6.2 billion a 12 months ago.
• CET 1 capital ratio, a measure of financial institution solvency, arrived at 14.4% vs . 14.9% a yr in the past.

Its investment banking division observed revenues down by 19% with the reduced overall performance in equity derivatives, funds equities, and funding income currently being offset by revenues in overseas trade. The Worldwide Wealth Management division also noted reduced revenues, down by 4% calendar year-on-12 months.

Nevertheless, Individual and Corporate Banking revenues rose in excess of the very same period of time on a lot more effective costs from the Swiss Countrywide Lender.

Shares of UBS are down about 8% so far this yr.