UBS Q3 profits jump 27% to $3.59 billion

UBS posted a pretax profit of $3.59 billion for the third quarter, up 27 % from a year earlier, in line with analysts’ expectations. The Swiss bank’s earnings grew to $2.7 billion after tax, matching forecasts. The jump comes as the lender’s global wealth‑management arm attracted record inflows, pushing net new assets to $55.1 billion by the quarter’s close. UBS also recorded $12.5 billion in client commitments across its wealth‑ and asset‑management businesses, reinforcing its revenue base.

The strong performance is driven by a surge in client inflows. Net new assets of $55.1 billion helped lift the bank’s common equity tier‑1 (CET1) capital ratio to 14.7 %, up from 14.4 % the previous quarter. The higher ratio reflects a solid capital cushion that regulators and investors view positively. UBS’s diversified model—spanning wealth, asset management, and investment banking—has been credited with smoothing earnings and supporting the bank’s resilience in a volatile market.

Meanwhile, UBS is completing the integration of Credit Suisse, a process it says is “firmly on track” for year‑end. The merger is expected to deliver $13.7 billion in cumulative cost savings, surpassing earlier estimates of $13.5 billion. The integration also boosts the bank’s asset base and client network, further strengthening its competitive position. UBS’s chief executive, Ralph Hamers, highlighted the benefits of a diversified global business model, underscoring the company’s strategic commitment to its worldwide footprint.

However, the bank remains in a standoff with the Swiss government over proposed capital buffers designed to shield taxpayers from future crises. Parliament recently voted to require UBS to hold 90 % of its CET1 capital—about $16 billion in extra shares—as collateral for foreign subsidiaries, while UBS currently stands at roughly 45 %. CEO Hamers warned that a 90 % requirement could compromise competitiveness, arguing that the bank needs to keep capital ratios capped at 50 % or lower. The dispute illustrates the tension between safeguarding the financial system and preserving UBS’s ability to compete in a global market.