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UBS quarterly net income fell 24%

Net profit of UBS Group AG, the world leader in wealth management, decreased by 24% in July-September and amounted to $1.73 billion compared to $2.28 billion a year earlier.

Quarterly revenue decreased to $8.24 billion from $9.12 billion a year earlier, the bank said in a press release.

The consensus forecast of experts for net income, provided by UBS itself, was $1.53 billion, for revenue – $8.16 billion.

The bank notes that the macroeconomic and geopolitical environment is becoming increasingly complex. Its performance in the third quarter was positively affected by the growth in interest rates, which somewhat compensated for the decline in client activity.

Wealth asset management business revenue fell 4% in the quarter to $4.79 billion, while the unit’s net interest income rose 23% on higher deposit rates.

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Income from investment banking operations UBS decreased by 19%, from operations in the field of asset management – by 13%, to $516 million.

The return on Tier 1 capital (Tier 1) at the end of the third quarter was 14.4%, exceeding the bank’s own forecast of 13%.

UBS repurchased $4.3 billion worth of its own shares in three quarters of 2022 and expects repurchases to $5.5 billion by the end of the year.

Shares of UBS added 2.8% in trading on Tuesday. Since the beginning of this year, their value has decreased by 5.2%.

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