UBS Q3 Net Profit Plunges, Net Interest Income Down - Quick Facts

(RTTNews) - Swiss banking giant UBS Group AG (UBS) reported Friday that its third-quarter net profit attributable to shareholders was 827 million Swiss francs or 0.22 franc per share, 60 percent lower than last year's 2.07 billion francs or 0.54 franc per share.

The prior year results included a tax benefit of 1.30 billion francs.

Pre-tax profit, however, increased 11% to 877 million francs from 788 million francs a year ago. Adjusted profit before tax of 1.30 billion francs climbed 33% year-on-year.

The company said this performance was achieved despite sustained economic and geopolitical uncertainty, persistently low client activity and subdued primary market issuance.

Operating income in the quarter edged down 2 percent to 7.029 billion francs from 7.170 billion francs last year. Net interest income declined 4 percent to 1.78 billion francs.

UBS said it will continue to take steps to offset higher than expected regulatory costs.

Looking ahead, UBS said the 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.