Despite a 42% increase in revenue to $11.695 billion, UBS Group announced a net loss of $785 million for the third quarter. This comes as a surprise to analysts, who had anticipated a net loss of $444 million. The integration of Credit Suisse has incurred significant costs, resulting in operating expenses soaring by 97% to $11.64 billion. Additionally, unfavorable foreign currency effects in certain regions have contributed to the bank's widening losses.
Key Highlights
- Net loss of $785 million as compared to a net profit of $1.73 billion in the previous year.
- Operating expenses increased by 97% to $11.64 billion due to Credit Suisse integration costs and unfavorable foreign currency effects.
- Net fee and commission income rose by 35% to $6.07 billion, driving UBS's profitability.
- Global wealth-management business revenue grew by 21%, but operating expenses also rose significantly by 44%.
- Asset management business experienced revenue growth, but operating expenses surged by 93%.
These results diverge from the expected third-quarter revenue of $11.32 billion and operating expenses of $11.7 billion, as per the consensus of analysts' views gathered by the bank.
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