UBS reported a 16% drop in its net profit at $1.049bn in the third quarter that ended 30 September 2019 compared to $1.253bn reported in the same quarter in 2018.
In the second quarter of 2019, the Swiss global investment bank reported a net profit of $1.39bn.
The diluted earnings per share of the bank came down 14% to $0.28 in the reported period compared to $0.33 in Q3 2018.
UBS’ operating income in Q3 2019 was $7.08bn compared to $7.42bn in the same quarter in the previous year. Its operating expenses came down from $6.49bn in Q3 2018 to $5.74bn in the reported period.
The total assets held by UBS at the end of the third quarter of 2019 are $973.11bn, compared to $958.4bn in Q3 2018.
The global wealth management (GWM) business of the bank saw an adjusted profit before tax of $919m, which represents a 2% decline from Q3 2019.
In the personal & corporate banking (P&C), the bank’s adjusted profit before tax came down 10% from Q2 2018’s figure of $407m to $362m.
In the asset management business, UBS grew its adjusted profit before tax by 6% to $135m, compared to $127m reported in Q3 2018.
The investment bank business reported a 59% drop in its adjusted profit before tax at $203m, compared to $489m made in the same quarter in the previous year.
UBS group CEO Sergio Ermotti said: “We delivered solid results generating attractive returns, considering the market conditions. We continue to take actions to grow profitability and further capitalize on the strengths of our diversified franchise, delivering long-term value for our clients and shareholders.”
Earlier this year, the Swiss banking group was ordered by a French trial court to pay penalties of €4.5bn for allegedly helping wealthy clients with tax fraud. The penalties, which were announced by the 32nd Chamber of the Paris Court of First Instance, comprise a fine of €3.7bn and €800m in additional damages to be paid to the French state.
UBS said that it will appeal against the French trial court ruling while denying any criminal wrongdoing.
