UBS posts doubling of Q3 profit in Ermotti's swan song

[ZURICH] UBS on Tuesday posted a 99 per cent jump in third-quarter profit on heavy turnover in global markets, helping the bank to a strong performance in investment banking as well as an unexpected rise in earnings for wealth management.

Net profit for the world's largest wealth manager climbed to US$2.1 billion for the July-September period, surpassing by a wide margin expectations for US$1.557 billion in the bank's poll of 22 analysts.

"Our third quarter results continue to demonstrate that our strategy is differentiating us as we continuously adapt and accelerate the pace of change," chief executive Sergio Ermotti said in his last month at the helm of Switzerland's biggest bank. He is due to be replaced in November by former ING head Ralph Hamers.

"UBS has all the options open to write another successful chapter of its history under Ralph's leadership," he said in a statement.

The sharp profit rise for Europe's first major lender to report third-quarter results follows a mixed performance for big US banks that saw those focused on trading clocking big gains while retail banks took a hit from the pandemic.

The robust showing by UBS' investment bank marks an ironic sendoff for Ermotti, who during his near-decade at the helm radically shrank the division and ramped up its focus on serving the world's rich.

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REUTERS