UBS has reported a 99% surge in its net profit at $2.09bn for the third quarter that ended 30 September 2020 compared to $1.04bn reported in the same quarter of 2019.
The bank said that the increase in net profit in Q3 2020 reflects ongoing strong client activity and also benefits of a well-diversified business model with a broad regional mix.
Its operating profit before tax in the reported quarter was up by 92% to $2.57bn compared to $1.34bn in Q3 2019, marking the Swiss banking group’s best profit before tax in a decade.
In the second quarter of 2020, UBS’ net profit was $1.23bn, and in the first quarter was $1.59bn.
The diluted earnings per share of the banking group were up by 101% to $0.56 in Q3 2020 compared to $0.28 in Q3 2019.
UBS’ operating income for the third quarter of this year increased by 26% to $8.93bn compared to $7bn in the same quarter in the previous year.
Its operating expenses increased by 11% from $5.74bn in Q3 2019 to $6.35bn in the reported period.
The total assets held by UBS at the end of the third quarter of 2020 reached $1.06 trillion, compared to $973.12bn in Q3 2019.
Segment-wise performance for UBS in Q3 2020
The global wealth management (GWM) business of the bank reported profit before tax of $1.05bn, which represents an 18% increase from Q3 2019.
In the personal & corporate banking (P&C), the bank’s profit before tax came down 13% year-over-year to CHF305m ($337.5m).
In the asset management business, UBS grew its profit before tax in Q3 2020 by 495% to $739m, compared to the same quarter of 2019. The bank said that the primary driver of the increase was the sale of a 51.2% stake in fund distribution platform Fondcenter to Clearstream for about $400m.
The investment bank business saw a 268% year-over-year spike in its profit before tax at $632m in the third quarter of 2020.
UBS Group CEO Sergio Ermotti said: “Our third-quarter results continue to demonstrate that our strategy is differentiating us as we continuously adapt and accelerate the pace of change.
“I am proud of the contributions all of our employees have made day in and day out over the years, particularly in the current challenging environment.
“Our ability to focus on clients and achieve such strong financial performance over the first nine months of this year speaks to this.”
