Switzerland's largest bank reports profit of USD1.43B profit in third quarter
Date
10/31/2024 8:29:12 AM
(MENAFN) Switzerland's largest bank, UBS Group AG, reported a significant profit of USD1.43 billion for the third quarter of the year, greatly surpassing analysts' expectations of USD740 million. This impressive financial performance can be attributed to the bank's effective cost-reduction initiatives and a surge in income from its investment banking division. In contrast, during the same quarter last year, UBS faced a loss of USD715 million, primarily due to high integration costs following its Acquisition of Credit Suisse, a historic deal valued at USD3.8 billion and regarded as the largest bank purchase since the 2008 global financial crisis.
In addition to the strong third-quarter results, UBS had already posted a profit of USD1.8 billion in the first quarter, exceeding a profit estimate of USD600 million, and USD1.14 billion in the second quarter. The robust earnings over the past two quarters were fueled by heightened transaction volumes in investment banking, driven by activities from wealthy clients, which helped generate higher revenues despite challenges in the bank's interest income.
Furthermore, UBS's operating income saw an annual increase of 5.5 percent, reaching USD12.3 billion, indicating healthy growth in its overall business operations. However, in a bid to streamline costs and enhance efficiency, the UBS Group has announced plans for layoffs that will extend until 2026, aiming to achieve total cost reductions of USD13 billion. These strategic moves are intended to strengthen the bank's financial standing in a competitive and evolving market.
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