(RTTNews) - Shares of UBS Group AG were gaining around 3 percent in Swiss trading after the banking major reported Tuesday that its third-quarter profit nearly doubled mainly driven by ongoing strong client activity. The company said its profit before tax was the best third-quarter result in a decade.
Further, the bank proposed dividend, and stated that at this stage, it is reasonable to expect credit loss expense in the fourth quarter to remain markedly lower than in the first half of the year.
Looking ahead, UBS said, "...recent increases in COVID-19 cases create renewed uncertainty, which could affect the path of recovery. ….Our ongoing growth initiatives and other actions to drive net interest income should offset US dollar interest rate headwinds. ..Going forward, the pandemic and political uncertainties may lead to periods of higher market volatility and could affect client activity positively or negatively."
For the third quarter, net profit attributable to shareholders surged 99 percent to $2.09 billion from last year's $1.05 billion. Earnings per share were $0.56, up 101 percent from $0.28 last year.
Profit before tax was $2.6 billion, 92 percent higher than last year. Adjusted profit before tax was $2.1 billion.
Global Wealth Management's profit before tax climbed 18 percent, delivering the highest third-quarter profit before tax since 2011 with positive operating leverage and growth in all regions.
Operating income grew to $8.94 billion from last year's $7.09 billion.
Further, UBS said its Board of Directors proposed the second tranche of 2019 dividend of $0.365 per share, to be paid on November 27, subject to shareholder approval at an Extraordinary General Meeting on November 19.
UBS also said it expects to be allowed to resume repurchasing shares in 2021.
In Switzerland, UBS shares were trading at 11.37 Swiss francs, up 4.03 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.