That exceeded the 1.73 billion-franc average estimate of six analysts surveyed by Bloomberg.
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“In the real world things do change and… regulation and the macroeconomic environment have changed materially”, he told analysts in a call. However the bank said it will beat this year’s target of a 10 percent return and aim for similar margins next year.
Swiss bank UBS said on Tuesday its finance chief will shift roles among a raft of changes to its top management.
Net new money in wealth management totaled 200 million francs, down from 1.8 billion the previous quarter, the lowest in at least four years. The pool split between the banks shrank 22% to $13.5 billion over the period, the data show.
“It’s not like Credit Suisse or Deutsche Bank where we have to go through two bad years to get decent returns”, said Becker, who has a “buy” rating on UBS stock.
The announcement came after the bank’s main Swiss rival Credit Suisse (LSE: 0QP5.L – news) announced Friday that it was under investigation by Swiss and U.S. authorities over banking links with Federation Internationale de Football Association officials accused of bribery and corruption. It recorded a net tax benefit of 1.30 billion mainly linked to an upward revaluation of deferred tax assets. Income from the advisory unit fell 15% to 126 million francs, while revenue in UBS’s corporate client solutions unit, which includes the advisory, underwriting and financing businesses, fell 4% to 710 million francs in the quarter. It took 592 million francs in charges for legal and regulatory provisions in the quarter.
Alongside earnings, UBS also announced a reshuffle of its top management Tuesday. “This is because net new money growth is lower than expected” and the turbulence in Asia also weighed on the business.
From January 1, current Chief Financial Officer Tom Naratil, who has been in the job since 2011, will take on the dual role of president of UBS’s wealth management business in the Americas and president of UBS Americas.
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Kirt Gardner, now Chief Financial Officer of Wealth Management, will become Group Chief Financial Officer.
