Swiss bank UBS has released its third quarter results for 2022.

UBS reported a 24 per cent year-on-year drop in third-quarter 2022 net profit, attributable to shareholders, to $1.73 billion. The figure was nevertheless more the $1.53 billion predicted by analysts, UBS said today.

Pre-tax profit in 3Q22 profit stood at $2,323 million, down 19 per cent year-on-year, compared with a strong quarter the previous year, the bank said in a statement. 

The cost/income ratio was 71.8 per cent while the return on Common Equity Tier 1 capital was 15.5 per cent and a CET1 capital ratio – a standard measure of a bank's capital buffer – of 14.4 per cent.

Total revenues fell 10 per cent from the same period in 2021; operating expenses declined by 6 per cent.

Banks such as UBS have benefited from a move away from the negative official Swiss interest rate regime that had been in place for more than six years. Against that, choppy markets and a dent to risk appetite have weighed on banks' results, while falling stock markets have also offset some of the benefits of client inflows. 

The Swiss bank also reported that total revenues fell by 4 per cent year-on-year in global wealth management, to $4.786 billion. Results included a $133 million gain from the sale of its domestic wealth management business in Spain. 

Across the entire wealth management business, UBS logged $17.1 billion of net new fee-generating assets in the quarter, and $36.9 billion for the first nine months of the year. Invested assets totaled $2.7 trillion at the end of September.

In the Americas, UBS reported net new fee-generating assets of $4 billion, while in Switzerland it saw SFr2 billion ($1.99 billion) net new loans in global wealth management and personal and corporate banking combined, primarily driven by mortgages.

In APAC, the bank saw $7 billion net new fee-generating assets 

UBS said it expects to repurchase about $5.5 billion of shares during 2022, saying that its exposure to rising interest rates across the globe and expense controls contributed to the quarter’s solid performance.

Ralph Hamers, group CEO said: “We delivered a good result of $2.3 billion PBT in a challenging environment.” 

“Our clients turned to us for advice and entrusted us with $17 billion of net new fee-generating assets. Our globally diversified and client-centric model combined with a balance sheet for all seasons is a competitive advantage, enabling us to deliver attractive and sustainable returns to shareholders,” he continued.