By Steve Goldstein
UBS Group on Tuesday was on track to finish at its highest level in more than three years as the Swiss banking giant recorded a stronger-than-forecast third-quarter profit.
UBS /zigman2/quotes/206994749/delayed CH:UBSG -1.84% /zigman2/quotes/206172872/composite UBS +0.53% shares edged up 0.2% after reporting a 9% profit rise and launching a $600 million stock buyback. It saw $19 billion in wealth management inflows during the period, which Bank of America analyst Alastair Ryan said occurred in a seasonally weak quarter. The analyst said the operating leverage brought the cost-to-income ratio down to 70%, which he said was better than for many years.
Morgan Stanley analysts led by Magdalena Stoklosa said the revenue showing was particularly strong in global wealth management, Switzerland and investment banking. She called the bank “inexpensive” at 10 times estimated 2022 earnings, or 1.1 times estimated price-to-tangible net asset value.
The stock has jumped 31% this year.
European stocks more broadly advanced, with most sectors apart from energy and healthcare gaining ground.
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -1.25% rose 0.5% to 474.70. Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX -1.35% gained 0.9%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.30% increased 0.7% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.27% increased 0.6%.
Reckitt Benckiser /zigman2/quotes/206856088/delayed UK:RKT +0.62% was another standout, leaping 6% as the maker of Dettol and Lysol upgraded its revenue outlook for the year by a percentage point, to a 1% to 3% growth range, after like-for-like sales growth of 3.3% in the third quarter.
Entain /zigman2/quotes/207493593/delayed UK:ENT -1.58% shares tumbled 10% as DraftKings /zigman2/quotes/213120645/composite DKNG -2.33% ended talks to buy it. Entain operates the BetMGM venture with MGM Resorts /zigman2/quotes/209932643/composite MGM -1.72% .