UBS Reports Stronger-Than-Expected Q3 Profit of $2.5 Billion

UBS (UBSG.S) reported a 74% jump in third-quarter net profit to $2.5 billion, far exceeding expectations, driven by higher revenue amid global tariff volatility and fluctuating financial markets.

According to a consensus estimate compiled by UBS, Switzerland’s largest bank was expected to post net income attributable to shareholders of around $1.29 billion.

However, the bank cautioned that macroeconomic uncertainty, a strong Swiss franc, and rising U.S. tariffs were clouding Switzerland’s economic outlook.

UBS said it expects deal activity to remain solid in the fourth quarter but warned that “sentiment could shift quickly if confidence in the outlook is tested.” It also noted that a prolonged U.S. government shutdown could delay capital market activity.

Earnings were boosted by $688 million in legal provisions released during the quarter, primarily linked to the resolution of Credit Suisse’s residential mortgage-backed securities business and an ongoing case in France involving UBS.

The bank’s Global Wealth Management division recorded $38 billion in net new money, while its Asset Management arm saw inflows of $18 billion, bringing total invested assets close to $7 trillion.

Strong inflows from Asia more than offset outflows in the United States, where UBS this week applied for a national bank charter.

In investment banking, global banking revenue rose 52% year-on-year and trading revenue increased 14%, marking a record third quarter for both segments as deal-making activity picked up again.

UBS said its integration of former rival Credit Suisse had progressed further, with more than two-thirds of Swiss-booked client accounts already migrated to UBS systems.