UBS earnings Q3 2022

UBS reports its latest earnings

FABRICE COFFRINI | AFP | Getty Images

UBS on Tuesday reported a net income of $1.7 billion for the third quarter of this year, slightly above analyst expectations, with the Swiss bank citing a challenging environment.

Analysts had expected a net profit of $1.64 billion, according to Refinitiv data. UBS reported a net income of $2.3 billion a year ago.

The Swiss lender had missed expectations in the last quarter when it posted a net profit of $2.108 billion. The bank said at the time the second quarter had been “one of the most challenging periods for investors in the last 10 years” due to high inflation, the war in Ukraine and strict Covid-19 policies in Asia.

UBS said Tuesday these factors continued to be in investors’ minds in the third quarter.

“The macroeconomic and geopolitical environment has become increasingly complex. Clients remain concerned about persistently high inflation, elevated energy prices, the war in Ukraine and residual effects of the pandemic,” Ralph Hamers, CEO of UBS, said in a statement.

Other highlights for the quarter include:

  • Revenues hit $8.3 billion, down from $9.1 billion a year ago.
  • Operating expenses dropped to $5.9 billion, from $6.2 billion a year ago.
  • CET 1 capital ratio, a measure of bank solvency, reached 14.4% versus 14.9% a year ago.

Its investment banking division saw revenues down by 19% with the lower performance in equity derivatives, cash equities, and financing revenue being offset by revenues in foreign exchange. The Global Wealth Management division also reported lower revenues, down by 4% year-on-year.

However, Personal and Corporate Banking revenues rose over the same period on more beneficial rates from the Swiss National Bank.

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

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