UBS posts 74% jump in third-quarter profit, beating expectations

Swiss banking giant UBS It reported stronger-than-expected third-quarter net profit on Wednesday, indicating significant momentum in its core businesses.

Net profit attributable to shareholders reached $2.5 billion in the quarter, up 74% from $1.43 billion in the same period last year. Analysts had expected net profit of $1.85 billion in the third quarter, according to a consensus compiled by LSEG.

Switzerland’s largest bank said its net profit included a net litigation reserve release of $668 million, mainly due to the resolution of legal matters related to Credit Suisse’s residential mortgage-backed securities business and its former cross-border activities in France.

UBS had revenue of $12.76 billion in the third quarter, slightly above analysts’ expectations of $12.68 billion.

“We delivered an excellent 3Q25 financial performance, supported by significant momentum in our core businesses and disciplined execution of our strategic priorities,” UBS CEO Sergio Ermotti said in a statement. he said.

Asset management generated $38 billion in net new assets in the third quarter.

The results come as UBS continues to move forward with its complex integration of Credit Suisse, with the Zurich-based bank wrapping up the process by the end of next year. UBS has officially completed the legal takeover of its domestic rival as part of a state-backed rescue in 2023.

But the bank now faces a potentially significant increase in the government’s mandatory capital requirements. Aims to learn from Credit Suisse collapse and reduce risks For taxpayers and the economy.

UBS, for its part, in question In June, he announced that while he supported most of the regulatory proposals outlined by the Swiss Federal Council, he “strongly disagreed” with what he described as an “excessive” increase in capital requirements.

UBS shares are up more than 11% so far this year.

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