Swiss wealth manager UBS has posted a net profit of CHF827m for the third quarter of 2016, a slump of 60% from CHF2.1bn in the same period last year.
The steep fall is explained by the fact that the year-ago profit figure benefited from a net tax benefit of CHF1.3bn.
For the three months to end-September, adjusted pre-tax profit was CHF1.3bn, a surge of 33% year-on-year, while reported pre-tax profit rose 11% year-on-year to CHF877m.
The group’s operating income fell to CHF7.03bn in the latest quarter, compared with CHF7.17bn in the third quarter of 2015.
The company in its earning statement said it achieved CHF1.5bn of annualized net cost savings on a normalized cost base as of 30 September 2016, an improvement from CHF1.4 billion in the prior quarter, making progress toward the CHF2.1bn 2017 year-end target.
UBS group CEO Sergio Ermotti said: "We delivered a strong performance across our businesses, despite seasonality and continued macroeconomic, geopolitical and market headwinds. Our strong position allows us to focus on helping our clients navigate the current environment. We will continue to execute with discipline and manage risk and resources prudently."
The group’s Wealth Management division delivered an adjusted profit before tax of CHF643m, down CHF55m from the third quarter of 2015. The division attracted net new money of CHF9.4bn, driven by net inflows in Asia Pacific and Europe, while absorbing cross-border outflows and remaining focused on quality.
Wealth Management Americas posted a adjusted profit before tax of $367m for the third quarter of 2016, an increase of $80m from the year ago quarter. Net new money in the third quarter was $0.8bn.