By Pietro Lombardi
UBS Group AG said Tuesday that its third-quarter net profit declined, hit by the performance of its investment bank, and warned that trade conflicts and geopolitical tensions continue to weigh on investor confidence.
The Swiss bank’s /zigman2/quotes/206172872/composite UBS +1.48% /zigman2/quotes/206994749/delayed CH:UBSG +0.96% net profit for the period was $1.05 billion compared with $1.25 billion a year earlier.
Operating income fell to $7.09 billion from $7.43 billion.
Analysts had expected a profit of $971 million on operating income of $7.10 billion, according to a consensus forecast provided by the bank.
Adjusted pretax profit fell 59% on year at the bank’s investment bank arm, while it was down 2% at its key wealth-management operations.
“We delivered solid results generating attractive returns, considering the market conditions,” Chief Executive Sergio Ermotti said.
The bank said the low-interest-rate environment will hit net interest income, while trade tensions and geopolitical issues hurt investor confidence.
“Our regional and business diversification, along with actions that we are taking, will help to mitigate these headwinds. Recurring revenues should also benefit from higher invested assets,” it said.