UBS Group (UBS, Financial) has announced its third-quarter results, which surpassed expectations, but has also cautioned about potential challenges, including the U.S. elections and declining interest income. UBS reported a net profit of $1.4 billion, nearly double the analysts' forecast of $783 million. The robust performance in loan business revenue and progress in cost reduction contributed to this outcome.
While UBS sees a positive outlook for a soft landing of the U.S. economy, it warns that the upcoming U.S. election could cause market volatility, affecting investor sentiment unpredictably. The macroeconomic outlook for other regions remains uncertain.
UBS's CEO, Sergio Ermotti, noted that the market currently anticipates a Trump victory. However, if Kamala Harris wins, trades betting on Trump may need to be reconsidered, potentially causing market shifts.
The Wealth Management division reported better-than-expected pre-tax profits, supported by increased fee income, which helped offset the decline in interest income. The net new assets in this division were $25 billion, aligning with expectations but slightly lower than the previous quarter.
UBS's Investment Banking unit achieved a pre-tax profit of approximately $405 million, surpassing analysts' estimates of $174 million, with growth in both transaction facilitation and market operations.
