UBS Group AG (NYSE:UBS) has reported a smaller-than-expected 24% drop in third-quarter net profit as client inflows and lower costs helped to offset the impact of volatile financial markets.
The Swiss banking giant said its net profit attributable to shareholders fell to $1.73 billion, ahead of the $1.53 billion consensus forecast, as revenue came in at $8.2 billion, a 10% drop from the same quarter a year earlier.
UBS posted $17 billion in net new fee-generating assets from its wealth management and $18 billion of net new money in asset management, and highlighted strong performances from all major regions.
Unsurprisingly, the firm's investment banking business was particularly hard hit by financial market turmoil with revenues in its global banking division plunging 58%. Global markets revenues, however, fell only 1%, with derivatives benefiting from increased volatility including in foreign exchange.
"We remain confident in our ability to deliver attractive and sustainable capital returns to shareholders," UBS chief executive Ralph Hamers said in the results statement.
UBS said in September that it planned to increase its dividend by 10% and expected 2022 share repurchases to exceed its $5 billion goal, boosting payouts from its strong balance sheet after scrapping a $1.4 billion deal to buy US automated wealth management provider, Wealthfront.
Swiss banking rival Credit Suisse reports its third-quarter numbers on Thursday, when it is also due to unveil details of a strategic overhaul.