UBS beats profit estimates with a hefty rise

CHRIS DORRELL

UBS BEAT analysts’ profit estimates as a drop in expenses and a significant influx of new assets helped offset a fall in revenue.

UBS’s profits rose 23 per cent to $1.7bn (£1.4bn) in the fourth quarter of the year, ahead of an estimated $1.3bn.

Net interest income at the Swiss lender fell year-on-year compared to the previous fourth quarter, but an eight per cent drop in revenue was offset by a 13 per cent fall in expenses nudging earnings per share to $0.50.

UBS’ global wealth management business performed best, recording an 88 per cent increase in profit to $1.1bn on the back of higher interest rates. However investment banking revenue fell 84 per cent to $112m. For the financial year 2022, UBS proposed a dividend of $0.55 per share for 2022, 10 per cent higher than last year.

“We delivered solid fourth-quarter results in a difficult macroeconomic environment. Our performance proves our strategy is the right one,” Ralph Hamers, group CEO said.