UBS’s net income for the third quarter more than doubled as the bank took a tax credit and set aside fewer provisions for legal probes, helping its investment bank swing to a profit.
That exceeded the $1.75bn average estimate of six analysts surveyed by Bloomberg. UBS was able to claim a tax credit of $1.32bn against earlier losses, mainly in the U.S.
CEO Sergio Ermotti said he was pleased with the quarter. 'Disciplined execution and our diversified business model allowed us to deliver strong results', he said in the statement.
The investment bank swung to a pretax profit of $503.5m, compared with an estimate of 330 million francs. Revenue from trading equities rose to $958.4m, compared with an estimate of $928.8m.
'The investment bank performed really well', said Alevizos Alevizakos, a London-based analyst at Keefe, Bruyette & Woods Inc. 'UBS is doing something right in the investment bank'.
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