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Third-Quarter Wealth Results Shine At UBS

Tom Burroughes

26 October 2021

The global wealth management arm of today reported a pre-tax profit of $1.5 billion in the third quarter of 2021, up a touch from $1.507 billion a year earlier and continuing a broadly positive trend for its results. 

The wealth arm of the Zurich-listed bank logged double-digit pre-tax profit growth in all regions. Operating income increased by 17 per cent year-on-year. Recurring net fee income increased by 23 per cent, primarily driven by higher average fee-generating assets, reflecting positive market performance and net new fee-generating assets. 

Net interest income increased by 15 per cent, on higher loan revenues from higher volumes and margins, as well as higher deposit revenues.

Fee-generating assets were slightly down sequentially to $1.412 trillion. Net new fee-generating assets were $18.8 billion, supported by inflows in nearly all regions, and represented an annualized growth rate of 5 per cent in the quarter, UBS said. Total invested assets as at the end of September were $3.2 trillion.

The cost/income ratio declined 69.8 per cent, down 5.8 percentage points year-on-year, as income increased by 17 per cent and operating expenses increased by 8 per cent driven by financial advisor variable compensation.

Among specific details, the bank said that from January until the end of September, it facilitated $26 billion of investments into private markets from private and institutional investors, highlighting how non-public investing is becoming increasingly important for high net worth and ultra-HNW clients.

At group level, UBS said that it logged a net profit, attributable to shareholders, of $2.3 billion, up by 9 per cent on a year earlier, and equating to $6.1 billion for the first nine months of the year. At the end of September it had a Common Equity Tier 1 ratio of 14.9 per cent – a standard measure of a bank’s capital “buffer."