By Pierre Bertrand
UBS Group swung to a wider third-quarter net loss than analysts had expected after costs related the integration of Credit Suisse cut into the bank’s earnings.
The Swiss bank said Tuesday that its net loss was $785 million compared with $1.73 billion in net profit in the prior year, despite revenue rising 42% to $11.695 billion.
Operating expenses soared 97% to $11.64 billion, reflecting Credit Suisse expenses and integration costs as well as unfavorable foreign currency effects in some areas.
Net fee and commission income, a key profit driver for UBS, increased 35% to $6.07 billion in the period.
Revenue grew 21% at its global wealth-management business, but operating expenses rose 44% during the reporting period, UBS said. Revenue also grew at its asset management business, but operating expenses jumped by 93%.
The result compares with expectations of $11.32 billion in third-quarter revenue, $11.7 billion in operating expenses, and a net loss of $444 million, according to a bank-provided consensus of analysts’ views.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
