UBS reported a 24 per cent fall in net profit, as its rich clients held back from turbulent markets and investment banking revenues shrank.
The world’s biggest wealth manager generated $1.7bn of net profit in the third quarter, ahead of analyst estimates of $1.5bn, on $8.2bn of revenue.
“Clients remain concerned about persistently high inflation, elevated energy prices, the war in Ukraine and residual effects of the pandemic,” said chief executive Ralph Hamers.
“In Switzerland, many of our retail and small business clients will also be impacted by disruptions across the rest of Europe, and we are focused on supporting them through the energy crisis.”
Analysts had predicted UBS would be the strongest European bank in the third quarter thanks to its wealth management business benefiting from rising interest rates, but that its performance would be offset by its risk-averse clients making fewer transactions and a sharp fall in investment banking revenues.
