UBS Group AG UBS 1.12% mentioned its internet revenue almost doubled within the third quarter on a surge in shopper buying and selling and deal making, liberating up money for dividends and share buybacks regardless of the coronavirus pandemic.
The Swiss banking big mentioned Tuesday internet revenue rose to almost $2.1 billion from $1.05 billion a yr earlier. Mortgage losses within the interval have been $89 million, decrease than the $268 million and $272 million provisions taken within the first and second quarters, and nicely under the degrees of many rivals.
UBS mentioned it put aside $1.5 billion to repurchase shares subsequent yr and has accrued $1 billion in money for 2020 dividends. A delayed dividend from 2019 might be paid subsequent month, UBS mentioned. It had conserved the money earlier this yr after Swiss regulators requested banks to take action.
The outcomes spotlight a rising divide between stronger and weaker banks in Europe because the pandemic hits some international locations and enterprise fashions more durable than others. UBS’s investment financial institution, like others, is benefiting from higher-than-usual buyer exercise whereas its wealth-management arm has gained internet new cash from purchasers to take a position as international wealth rebounds from a spring rout.
UBS mentioned the pandemic has been altering the way in which purchasers work together with the financial institution, bringing extra of them on-line by way of mobile-banking functions and different platforms. Its rich prospects have additionally been on an “intensified seek for returns,” UBS mentioned in a presentation, with some growing their investments in personal markets, an space that features shopping for inventory and lending cash to corporations that aren’t publicly traded.