Swiss bank giant UBS posts best Q3 in a decade despite pandemic

UBS’ operating profit increased 26 percent to $8.9 billion, also surpassing analyst expectations. (Reuters)
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Updated 20 October 2020

Swiss bank giant UBS posts best Q3 in a decade despite pandemic

  • The world’s largest wealth manager saw net profit jump 99 percent year-on-year to $2.5 billion

ZURICH: Swiss banking giant UBS said Tuesday it nearly doubled its net profit in its best third quarter in a decade, the latest in a string of global lenders to report better-than-expected results despite the coronavirus pandemic.
The world’s largest wealth manager saw net profit jump 99 percent year-on-year to $2.5 billion, it said in a statement, handily beating analyst expectations for $1.5 billion.
The rise comes after net profit dropped by 11 percent in the second quarter to June as the firm stepped up provisions for bad loans with the global economy in a tailspin due to the pandemic.
UBS’ profits received a one-off, third-quarter boost from the $631 million sale of a majority stake in its fund platform Fondcenter to Clearstream, a subsidiary of the Deutsche Borse group.
Its operating profit increased 26 percent to $8.9 billion, also surpassing analyst expectations.
CEO Sergio Ermotti said he was proud of the third quarter results, his last at the helm, with ex-ING group chief Ralph Hamers taking over as chief executive officer on November 1.
“UBS has all the options open to write another successful chapter of its history under Ralph’s leadership,” Ermotti said in the statement.
But UBS did not give any estimate of its outlook, due to a “high level of uncertainty.”
“Going forward, the pandemic and political uncertainties may lead to periods of higher market volatility and could affect client activity positively or negatively,” it said in the statement.
Other global banking giants to report surging profits this earnings season include Goldman Sachs, JPMorgan Chase and Citigroup.


Bitcoin heads for worst weekly loss in months

Updated 22 January 2021

Bitcoin heads for worst weekly loss in months

  • The world’s most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 early in the Asia session

SINGAPORE: Bitcoin wavered on Friday and was heading toward its sharpest weekly drop since September, as worries over regulation and its frothy rally drove a pullback from recent record highs.
The world’s most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 early in the Asia session, before steadying near $32,000. It has lost 11 percent so far this week, the biggest drop since a 12 percent fall in September.
Traders said a report posted to Twitter by BitMEX Research suggesting that part of a bitcoin may have been spent twice was enough to trigger selling, even if concerns were later resolved.
“You wouldn’t want to rationalize too much into a market that’s as inefficient and immature as bitcoin, but certainly there’s a reversal in momentum,” said Kyle Rodda, an analyst at IG Markets in Melbourne, in the wake of the BitMEX report.
“The herd has probably looked at this and thought it sounded scary and shocking and it’s now the time to sell.”
Bitcoin was trading more than 20 percent below the record high of $42,000 hit two weeks ago, losing ground amid growing concerns that it is one of a number of price bubbles and as cryptocurrencies catch regulators’ attention.
During a US Senate hearing on Tuesday, Janet Yellen, President Joe Biden’s pick to head the US Treasury, expressed concerns that cryptocurrencies could be used to finance illegal activities.
That followed a call last week from European Central Bank President Christine Lagarde for global regulation of bitcoin.
Still, some said the pullback comes with the territory for an asset that is some 700 percent above the 2020 low of $3,850 hit in March.
“It’s a highly volatile piece,” said Michael McCarthy, strategist at brokerage CMC Markets in Sydney. “It made extraordinary gains and it’s doing what bitcoin does and swinging around.”
Second-biggest cryptocurrency ethereum initially slipped to a one-week low on Friday before rising 6 percent late in the Asia session to $1,177.