UBS reports strong third quarter profit amid Credit Suisse integration challenges

UBS has reported strong Q3 profits of $1.9 billion, exceeding expectations and marking a recovery from the previous year's loss of $785 million.

Integration of Credit Suisse

The integration of Credit Suisse is progressing, with client account migrations completed in Luxembourg and Hong Kong, and upcoming migrations planned for Singapore, Japan, and Switzerland.

UBS is actively reducing legacy assets inherited from Credit Suisse and is aware of the challenges ahead in integrating approximately 1.3 million clients.

Asset Management

UBS has collected $25 billion in new money in asset management during Q3, contributing to an anticipated total of $100 billion for the year.

Challenges in the Swiss Market

However, the Swiss market has faced challenges, with income declining by eight percent.

Integration costs and rising compensation in client advisory services have led to increased expenses for UBS.

Regulatory Scrutiny

UBS is also facing regulatory scrutiny regarding its capitalization, with discussions about potential additional capital requirements.

The bank is preparing for a potential draft revision of the Capital Adequacy Ordinance.

Leadership Focus

UBS's leadership remains focused on balancing growth with risk management.

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