UBS said that the increase in operating expenses and revenues for Q3 2023 is primarily due to the integration of Credit Suisse and is currently evaluating the implications of its acquisition of Credit Suisse and conducting a robust risk analysis of the combined firm
UBS headquarters in Zürich, Switzerland. (Credit: Parpan05/Wikipedia)
Swiss investment banking company UBS has reported a net loss of $785m for the third quarter ended 30 September 2023, compared to a net profit of $1.73bn for the same quarter in 2022.
The company reported total revenues of $11.69bn for the third quarter (Q3) of 2023, a 42% rise compared to $8.23bn for the same period in the previous year.
It has reported operating expenses of $11.64bn for Q3 2023, a 97% increase compared to $5.91bn for the corresponding quarter in 2022.
UBS reported a net interest income of $2.10bn for Q3 2023, a 32% rise compared to $1.59bn for the same quarter in the previous year.
The company’s operating loss before tax for the reported period was $255m, compared to a profit before tax of $2.32bn for the same quarter in 2022.
UBS said its operating loss before tax for Q3 2023 primarily reflects higher operating expenses and net credit losses, partly offset by increased total revenues.
Also, the increase in operating expenses and revenues was due to the integration of Credit Suisse, said the Swiss lender.
The company is evaluating the implications of its acquisition of Credit Suisse and conducting a robust risk analysis of the combined firm.
UBS Group CEO Sergio Ermotti said: “We are executing the integration of Credit Suisse at pace and have delivered underlying profitability for the Group in the first full quarter since the acquisition.
“Our clients have continued to place their trust and confidence in us, contributing to strong inflows across wealth management and our Swiss franchise.
“We are optimistic about our future as we build an even stronger and safer version of the UBS that was called upon to stabilize the financial system in March and one that all of our key stakeholders can be proud of.”
UBS’ Global Wealth Management business reported total revenues of $5.81bn for Q3 2023, a 21% rise compared to $4.78bn for the respective period in 2022.
The company’s Personal and Corporate Banking unit reported total revenues of $2.87bn for Q3 2023, a 156% increase compared to $1bn for the same period in the previous year.
The Swiss lender’s Asset Management arm reported total revenues of $755m for Q3 2023, a 46% rise compared to $516m for the respective quarter in 2022.
Its Investment Bank business reported total revenues of $2.15bn for Q3 2023, a 6% increase compared to $2.03bn for the same quarter in the previous year.
The company’s Non-core and Legacy businesses reported total revenues of $350m for Q3 2023, compared to $77m for the same period in 2022.