View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 26, 2021updated 09 Nov 2021 11:08am

Wealth management drives UBS profit in Q3 2021

By Kuldeep Jha

UBS has registered its best quarterly profit since 2015 aided by strong performance at its wealth and investment units in Q3 2021.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The Swiss investment bank benefited from favourable markets and investor sentiment during the period which ended on 30 September 2021.

UBS Group CEO Ralph Hamers said: “Our business momentum, our focus on fuelling growth, on disciplined execution and on delivering our full ecosystem to clients – all of this led to another strong quarter across all of our business divisions and regions, resulting in a pre-tax profit of USD 2.9bn.”

Key group highlights

UBS Group reported a net profit of $2.3bn in Q3 2021, up 9% from $2bn in the year-ago period.

The bank’s operating income increased to $9.1bn from $8.9 over the period, while operating expenses fell 1% or $93m to $6.2bn on a year-on-year basis.

Its CET1 capital ratio at the end of September 2021 stood at 14.9% as against 13.5% in the prior year.

Global Wealth Management

UBS’ Global Wealth Management (GWM) unit recorded a 43% year-on-year surge in profit.

Pre-tax operating profit at the division increased to $1.5bn during the quarter from $1bn in Q3 2020, aided by higher operating income, partly offset by higher operating expenses.

The unit’s operating income rose 17% year-on-year to $5bn while operating expenses increased 8% to $3.5bn.

The recurring net fee income was $2.8bn, which represents an increase of 23% from $2.3bn in the year-ago period.

GWM’s other income increased by $27m to $119m during this period. This included a $100m gain from the sale of domestic wealth management business in Austria to LGT.

Asset Management

Operating profit before tax plunged 71% to $214m in Q3 2021 from $739m in the same quarter last year, when it made a $571m gain from the sale of a majority stake in Fondcenter.

The unit’s operating income decreased 49% to $593m.

Total operating expenses were $37reg9m, down 10% from the year-ago quarter.

Investment Bank

Profit before tax at the division soared 32% to $837m while operating expenses dropped 10%.

Total operating income rose 1% to $2.5bn. Global Banking revenues jumped 22% to $792m, mainly owing to a rise in Advisory and Capital Markets revenues. Global Markets revenues dipped 7% to $1.72bn.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International