The world’s largest wealth manager, UBS on Tuesday posted a blockbuster 99% jump in third-quarter profit on heavy turnover in global markets, driven by strong performance in investment banking as well as an unexpected rise in earnings for wealth management.
Net profit for the world’s largest wealth manager climbed to $2.1 billion (1.6 billion pounds) for the July-September period, beating analyst’s expectations of $1.557 billion.
Chief executive Sergio Ermotti said in a statement. “Our third quarter results continue to demonstrate that our strategy is differentiating us as we continuously adapt and accelerate the pace of change,”. He further said “I am proud of the contributions all of our employees have made day in and day out over the years, particularly in the current challenging environment.”
The world’s largest wealth manager said it would pay out a dividend of $0.365 per share next month and set aside $1.5bn for potential share buybacks moving forward.
However, UBS has warned that the recent uptick in COVID-19 cases around the world “could affect the path of recovery” moving forward. According to the world’s largest wealth manager political uncertainty around the world meant: “The range of possible outcomes remains wide, making reliable predictions difficult.”
Chief executive Sergio Ermotti is set to be replaced as UBS chief executive by former ING leader Ralph Hamers in November.