Swiss investment bank UBS announces $1.43B profit in Q3

By Bahattin Gonultas

BERLIN (AA) - Switzerland’s largest bank UBS Group AG announced a $1.43 billion in profit in the third quarter of the year on Wednesday, well above the estimated $740 million.

The high profit was attributed to the bank’s cost reduction efforts and increased investment banking income.

Last year, the bank posted a $715 million loss in the third quarter due to high integration costs after it acquired the 167-year-old Credit Suisse for $3.8 billion— the largest bank purchase since the 2008 global financial crisis.

This year, the bank announced a $1.8 billion in profit in the first quarter, above the $600 million profit estimate, and a $1.14 in billion profit in the second quarter.

The profits of the last two quarters were due to high transaction volumes in investment banking, as wealthy customers’ transactions resulting in higher revenues despite the bank’s interest income.

Meanwhile, the bank’s operating income climbed 5.5% on an annual basis to $12.3 billion.

At the same time, the UBS Group plans layoffs until 2026 to reduce its costs by $13 billion.

*Writing by Emir Yildirim in Istanbul