UBS has posted a 99% jump in net income in Q3 2020, beating analyst expectations of $1.55bn, aided by strong performance in investment banking, asset and wealth management divisions.

Q3 Highlights

The Swiss wealth manager’s net income in Q3 2020 surged to $2.1bn from $1.05bn a year ago.

Operating expenses increased during the period to $6.36bn from $5.74bn.

Pre-tax profit at the group soared 92% year-on-year to $2.56bn, which is said to be the best third-quarter result in ten years.

The group’s loan loss provisions in the quarter stood at $89m as against $272m in the previous quarter.

The bank also noted that it has put aside $1.5bn for share buybacks, which is slated to begin in 2021.

UBS Group CEO Sergio Ermotti said: “Our third quarter results continue to demonstrate that our strategy is differentiating us as we continuously adapt and accelerate the pace of change.”

Global Wealth Management 

At $1.06bn, the unit’s pre-tax profit in Q3 2020 was 18% higher than the prior year and the highest third-quarter result since 2011.

The growth was driven by Asia Pacific and the Americas, in what is said to be the highest third quarter result on record in the two regions.

Besides, invested assets reached an all-time high of $2.75bn.

Investment Bank

The unit reported a 268% jump in profit before tax to $632m, with global markets revenue surging 42% due to increased client activity amid market volatility, mainly in equity derivatives, credit, FX and cash equities.

Global banking increased 44% driven by growth in equity capital markets and leveraged capital markets revenues that offset the fall in advisory.

Asset Management

Performance was strong at this unit with a 495% year-on-year surge in profit before tax to $739m.

The result was driven by the sale of a majority interest in B2B fund distribution platform Fondcenter to Clearstream.

The unit’s adjusted profit before tax was $191m, 42% higher than a year earlier.

Personal & Corporate Banking lags

This was the only unit where profit before tax fell in Q3 2020.

Profit before tax at the unit dropped to CHF305m in the quarter, reflecting credit loss expenses.