UBS is powering through the pandemic #Breaking112
The bank also grew revenue in its core wealth management division, which reported record profits in Asia and the United States. The stock was up nearly 3% in Zurich at midday on Tuesday.
CEO Sergio Ermotti said the performance demonstrated the bank’s ability to “focus on clients” in the current challenging environment. In a video posted to the company’s website, he said that the pandemic has increased the number of customers interacting with the bank digitally, and that 20% to 30% of its workforce could regularly work from home in the future.
UBS acknowledged that recent increases in coronavirus cases in Europe “create renewed uncertainty” and make “reliable predictions difficult.”
But the bank said that the majority of its credit exposures are of “high quality” and it expects credit losses in the fourth quarter to remain “markedly lower” than in the first half of the year.
UBS recorded credit losses of $89 million in the third quarter, a significant reduction on the $272 million recorded between April and June. Investment banking revenues increased 42% on the third quarter last year, driving a 268% surge in profit before tax to $632 million.