UBS benefited from booming market conditions for its wealthy clients in the third quarter, as profits from its wealth management business rose 43 percent, the group reported Tuesday morning.
The Swiss bank has also benefited from a flurry of deals and booming markets this summer, with its investment bank increasing its pre-tax earnings by 32 percent over the previous year.
Overall, UBS’ third-quarter earnings rose 11 percent to $2.9 billion.
The world’s largest wealth manager has suffered a severe pandemic as its wealthy clients see their assets soar thanks to the trillions of dollars that central banks have pumped into the global economy.
“Regardless of the background, we have and will continue to provide our clients with valuable advice and quality implementation, enabling them to navigate volatility and seize opportunities,” said Ralph Hammers, who took over as CEO of UBS a little less than a year ago.
UBS reported an 11 percent annual revenue increase in its investment bank for the third quarter, excluding exceptional items, with its advisory and capital markets business performing strongly.
By comparison, the largest US investment banks reported a 19 percent revenue increase in third-quarter results earlier this month.
Three months ago, UBS reported its best second quarter ever, with a 63 percent increase in earnings on the back of booming markets and a boom in mergers and acquisitions.
UBS said on Monday it would sell its Spanish wealth management business, known as UBS Gestion, to Madrid-based Singular Bank, which is run by former Santander CEO Javier Marin.
UPS did not give a price for the deal, which it said it hopes to close in the third quarter of next year.
While the deal will include all local employees and clients moving to Singular, it does not include asset management and investment banking at UBS in Spain.