UBS, one of the leading financial institutions, announced on Tuesday that it experienced a loss in the third quarter. This loss was primarily driven by integration costs following the acquisition of Credit Suisse.
In the third quarter, UBS reported a loss of $785 million. This is a significant turnaround from the $1.74 billion profit recorded in the same period last year. It is worth noting that the bank had an extraordinary profit of $29 billion in the previous quarter, mainly due to the completion of the Credit Suisse deal.
Despite the loss, UBS saw a substantial increase in revenue, which rose by 42% to reach $11.7 billion. This figure includes $3.47 billion of revenue generated by Credit Suisse.
When looking at the underlying figures before taxes, UBS experienced a decline in pretax profit of 59%. The total pretax profit for this quarter reached $844 million. This decline can be attributed to rising operating expenses and net credit losses amounting to $306 million.
However, UBS outperformed analysts’ expectations, who had predicted an underlying pretax profit of only $206 million.
Positive Net New Deposits
Despite the challenging quarter, UBS managed to attract net new deposits amounting to $33 billion. Moreover, this includes the first positive net new money for Credit Suisse’s wealth management division in a year and a half.
Overall, UBS remains committed to navigating through this difficult period and leveraging its strengths to deliver long-term success.