UBS Group AG (NYSE:UBS) shares rose 3% to 31.86 CHF after reporting stronger-than-expected third-quarter results, lifted by gains in its trading and wealth management businesses and a one-off boost from releasing legal provisions.
The Swiss bank posted a net profit of $2.5 billion for the three months to September, up 74% on the same period last year and well ahead of analyst forecasts of $1.1 billion. Revenue rose 3% to $12.8 billion.
Results were helped by $668 million previously set aside for potential legal and regulatory issues that UBS no longer expects to pay.
The investment banking arm performed particularly well, with revenue up 23% year on year to $3.2 billion. Wealth management income rose 5.5% to $6.5 billion as clients remained active despite market volatility.
UBS has now achieved $10 billion in cost savings from its takeover of Credit Suisse in 2023, reaching more than three-quarters of its $13 billion target ahead of schedule. The bank said it had achieved a further $900 million in savings during the quarter.
The stock rose