UBS struck a confident tone on Tuesday, reaffirming key financial targets and pledging more share buybacks next year, buoyed by higher interest rates and strong wealth management inflows.
The world's biggest wealth manager reported a smaller-than-expected 24% slide in third-quarter net profit, with lower costs and rising interest income helping to mitigate the impact of turbulent financial markets.
The Swiss bank attracted $17 billion in net new fee generating assets in wealth management and $18 billion of net new money in asset management, with strong performances from all major regions.
"The focus in the results should fall on the very positive net new money in Wealth Management," said analysts at ZKB.
JPMorgan analysts saw a link between the Swiss bank's ability to attract new funds and the woes at struggling rival Credit Suisse (CSGN.S).
"UBS has continued to gain from recent CSG uncertainty in 3Q and likely to do so in 4Q in terms of net new fee generating assets," they said.
Chief Executive Ralph Hamers told reporters only that UBS was gaining clients from several competitors.
HSBC (HSBA.L), also reporting on Tuesday, said profits slid 42% in the third quarter due to rising loan losses and asset sales. Credit Suisse reports on Thursday, when it is also due to unveil details of strategic overhaul.
