UBS profits fall, warning investors of trade tensions
UBS Group AG said its net profit for the third quarter decreased, hurt by its investment bank’s results, and cautioned that trade disputes and geopolitical tensions tend to weigh on investor confidence.
The net profit of the Swiss bank for the year was $1.05 billion compared to the previous year’s $1.25 billion.
From $7.43 billion, operating income fell to $7.09 billion.
Analysts had predicted a loss of $971 million on $7.10 billion in operating income, according to the bank’s median estimate.
Adjusted pretax profit fell 59 per cent year-on-year in the investment bank segment of the firm, while its main wealth-management activities declined 2 per cent.
“In spite of the market conditions, they generated solid results-producing competitive returns,” said Chief Executive Sergio Ermotti.
The bank said the low-interest-rate environment would harm net interest profit, while trade disputes and geopolitical issues would damage the trust of shareholders.
“Together with the steps we are taking, our geographic and sector diversification will help to mitigate such headwinds. Furthermore, recurrent sales will benefit from higher capital spent, “he added.