Ubs doubles the net profit in the third quarter of 2020, posting a 99% year-on-year increase to $2,1 billion (€1,7 billion) thanks to the investment bank's performance and wealth management.
THEpre-tax profit it grew by 92%, reaching 2,6 billion, the best third quarter result of the last ten years. L'Adjusted pre-tax profit it stands at 2,1 billion, +41% on an annual basis. In great dust the investment banking division, which reported a 268% increase in pre-tax profit during the quarter "thanks to a spike in equity trading that more than offset the decline in its advisory business," UBS said in a statement. The bank has set aside $1,5 billion for share buybacks next year.
Going forward with the parameters, the operating income was up 26% from last year's third quarter, to $8,9 billion, while the return on capital CET12 is equal to 21,9%, the cost/income ratio it is 70,4%; L'diluted earnings per share it is at 0.56 dollars.
Il CET1 capital ratio is equal to 13,5% and the CET1 leverage ratio3 it stands at 3,8% "after the establishment of reserves for 1,5 billion dollars intended for potential buybacks of treasury shares starting from 2021", specifies Ubs.
By virtue of the results achieved, the board of directors of the Swiss institute has proposed the payment of the second tranche of the dividend for 2019, equal to $0.365 per share, as of November 2020.
“The third quarter results continue to demonstrate that our strategy is differentiating us and we are continually accelerating the pace of change,” said the chief executive Sergio Ermotti in his last month at the helm of Switzerland's largest bank. He is expected to be replaced in November by former ING chief Ralph Hamers.
After the release of the results of the third quarter, the Zurich Stock Exchange il Ubs stock gains 2,38% to 11,19 francs.
