UBS reported stronger-than-expected results on Thursday morning on the back of higher loan volumes, as well as strong growth in equities and foreign exchange trading.
Net profit hit 1.2 billion Swiss francs ($1.2 billion) for the third quarter of 2018, which was 32 percent higher than what the bank had reported for the same period last year. It also beat expectations, with analysts predicting a figure of 1.018 billion Swiss francs, according to Reuters.
Here are some of the key highlights for the third quarter of 2018:
- Operating income: 7.3 billion Swiss francs, versus 7.1 billion Swiss francs in the third quarter of 2017.
- Net profit: 1.2 billion Swiss francs, versus 946 million Swiss francs in the third quarter of 2017.
- Diluted earnings per share: 0.32 Swiss francs, versus 0.25 Swiss francs in the third quarter of 2017.
- Common equity tier 1 capital ratio: 13.5 percent, from 13.7 percent in the third quarter of 2017.
"Our results for the quarter once again highlight the benefits of our diversification. They also demonstrate that we are pursuing a focused strategy in each of our business divisions, creating value for our clients and shareholders." Sergio Ermotti, Group Chief Executive Officer of UBS, said in a statement.
UBS cautioned against ongoing geopolitical and trade tensions, which could dent investor sentiment. However, the bank also said that monetary policy normalization and the recent increase in volatility are "generally positive" for the firm.