By Pietro Lombardi

 

UBS Group AG released third-quarter results on Tuesday. Here is what we watched.

 

NET PROFIT: The world's largest wealth manager by assets almost doubled its third-quarter net profit to $2.09 billion, well above analysts' expectations of $1.56 billion, according to a consensus forecast provided by the bank.

 

REVENUE: Operating income, the bank's top line figure, rose 26% to $8.94 billion. This compares with analysts' expectations of $7.73 billion.

 

WHAT WE WATCHED:

 

-BUYBACK: UBS has set aside capital reserves of $1.5 billion for buying back its shares, which it expects to be allowed to do next year. The bank has also set aside $1 billion for a cash dividend it plans to propose to shareholders in April.

 

-WEALTH MANAGEMENT: The bank's key wealth-management unit posted 18% growth in pretax profit, achieving the best third-quarter pretax profit since 2011.

 

-CREDIT LOSSES: The Swiss bank posted credit losses of $89 million, more than during the same period last year but much less than the figure it posted for the second quarter and below the $201 million analysts had forecast. In the fourth quarter, credit losses should remain much lower than the levels seen in the first half.

 

-INVESTMENT BANK: Like its U.S. peers, UBS benefited from a strong performance of its investment bank arm, where revenue rose to $2.49 billion from $1.75 billion a year earlier.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com; @pietrolombard10

 

(END) Dow Jones Newswires

October 20, 2020 05:01 ET (09:01 GMT)

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