UBS Fee Bonanza Raises Quarterly Profit To Six-Year High

UBS posted its highest quarterly profit since 2015 on Tuesday, as robust trading activity by the world's ultra-wealthy led to a 23% surge in fee income, Brenna Hughes Neghaiwi reported for Reuters.

Photo Insert: The UBS logo high atop the company's building in Zurich, Switzerland

The surprisingly strong results follow double-digit percent gains for net profit in each of the past four quarters and come as Switzerland's largest bank announced new plans for its digital push including a new advisory service for affluent US clients.

Third-quarter net profit came in at $2.279 billion, easily surpassing a median estimate of a 24% slump to $1.596 billion from a poll of 23 analysts compiled by the bank. "

We continue to perform well above the financial targets that we have given you. And while we do that, we continue to be focused on driving growth on the top and the bottom line," Chief Executive Ralph Hamers said on a call with analysts.

The bank's flagship wealth management business posted its best pre-tax profit ever, soaring 43% on a 4% climb in income from transactions amongst its wealthy and ultra-wealthy clients as well as a 15% rise in net interest income due to higher lending levels and margins.

The division saw $18.8 billion in fresh client fee-generating inflows, while invested assets fell slightly from June to $3.198 trillion. UBS's investment bank posted a steadier performance, with revenue edging 1% higher.

Revenue in its equities trading unit was up 3% to $1.36 billion, but its foreign exchange, rates, and credit arm posted a 32% drop in turnover to $363 million. Revenue from advising on deals and listings jumped 22% to $792 million, helped by bumper M&A volumes.

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