UBS makes progress on cost savings as profits rise

UBS reports third quarter adjusted pre-tax earnings increased 33% this year, compared to the same period last year.

UBS’s third quarter earnings revealed the investment bank is on track to reach its CHF 2.1 billion cost savings target by the end of 2017.

The Group has managed CHF 1.5 billion of annual cost savings - as of 30 September this year - up from CHF 1.4 billion the prior quarter.

“UBS will continue to take steps to offset higher than expected regulatory costs,” the earnings report said.

The bank reported a 33% increase in adjusted pre-tax profit in the third quarter this year, totalling CHF 1.3 billion, compared to CHF 979 million in the same period of 2015.

Sergio Ermotti, chief executive at UBS, said a strong performance across its businesses had been delivered, “despite seasonality and continued macroeconomic, geopolitical and market headwinds.”

“We will continue to execute with discipline and manage risk and resources prudently,” he added.

The investment banking business saw adjusted pre-tax profits plummet 44% in the third quarter this year, from CHF 614 million in 2015 to CHF 342 million.

UBS said: “A strong performance in foreign exchange, rates and credit was more than offset by a decrease in equities from a strong prior year quarter.”