By Scott Kanowsky
Investing.com -- Shares in UBS Group AG (SIX:UBSG) climbed on Tuesday after the Swiss banking giant posted a 24% slide in income in the third quarter, but still beat expectations.
Net profit for the three-month period dropped to $1.7B, translating to diluted earnings per share of $0.52. Analysts had estimated the figure would come in at $1.5B.
Total revenues fell by 10% year-on-year to $8.2B.
The lender was boosted by strong activity among its institutional clients, as well as benefits from rising interest rates and cost controls.
But it flagged that recent market volatility has led private investors to shy away from risk-taking.
“The macroeconomic and geopolitical environment has become increasingly complex. Clients remain concerned about persistently high inflation, elevated energy prices, the war in Ukraine and residual effects of the pandemic," said Chief Executive Officer Ralph Hamers in a statement.
He also warned that many retail and small business clients in Switzerland will be hit by disruptions across Europe, particularly in gas markets.
Meanwhile, UBS' key cost-income ratio came in at 71.8%, within the group's target range of 70% - 73%. The bank promised to remain "disciplined" on risk management and cost efficiency as it heads into the fourth quarter.