Adjusted pre-tax profits hit a record in the wealth business for the Americas at UBS while in the rest of the world profits dipped in Q3. Inflows were robust.

UBS reported mixed results in its wealth management business lines in the Americas and rest of the world today. The former clocked up a record pre-tax adjusted profit while the business for the rest of the world was down slightly in the third quarter, although it logged strong inflows of client money.

Wealth management (excluding the Americas) delivered an adjusted profit before tax of SFr643 million ($647 million), down SFr55 million from the third quarter of 2015, which the Swiss lender said was a "solid performance given continued subdued client activity". The business attracted net new money of SFr9.4 billion, driven by net inflows in Asia-Pacific and Europe, while absorbing cross-border outflows. Net mandate sales in the quarter were SFr4.1 billion, with mandate penetration stable at 27.1 per cent of invested assets. This business area's adjusted net margin increased by 1 basis point from the prior quarter to 27 basis points, as expenses decreased 4 per cent. The cost/income ratio at the end of September was just below 65 per cent.

Assets under management at the end of the quarter stood at SFr967 billion; at Wealth Management Americas, AuM stood at SFr1.074 trillion, it said.

Wealth Management Americas posted a record adjusted profit before tax of $367 million, an increase of $80 million from the third quarter of 2015, reflecting record net interest income and recurring net fee income, as well as lower operating expenses. Net new money in the third quarter was $800 million. Managed account assets increased 30 basis points compared to the prior quarter to a record 34.8 per cent of invested assets, UBS said in a statement today. The cost/income ratio for this part of UBS was 83.5 per cent, it said.

For the banking group as a whole, UBS reported an adjusted profit before tax of SFr1.3 billion in Q3, up 33 per cent year-on-year. Reported pre-tax profit was up 11 per cent year-on-year to SFr877 million. Net profit attributable to shareholders was SFr827 million, with diluted earnings per share of SFr0.22.

UBS said the asset management segment delivered an adjusted profit before tax of SFr138 million, which was flat year-over-year. Performance fees increased, while net management fees decreased, reflecting the sale of the Alternative Fund Services business in the fourth quarter of 2015, as well as lower average invested asset levels. Net new money, excluding money market flows, was SFr2.0 billion, driven by third parties. The investment bank posted an adjusted profit before tax of SFr342 million compared with SFr614 million in the third quarter of 2015.

"Underlying macroeconomic uncertainty and geopolitical tensions continued to contribute to client risk aversion and generally low transaction volumes. Lower than anticipated and negative interest rates still present considerable headwinds. These conditions are unlikely to change in the foreseeable future," the Zurich-listed lender said.

"Implementing Switzerland’s new bank capital standards and the proposed further changes to the international regulatory framework for banks will result in increasing capital requirements and costs. UBS is well positioned to deal with these challenges and to benefit from even a moderate improvement in market conditions. We remain committed to executing our strategy with discipline," it added.