Despite highly publicized losses from the actions of a rogue trader, Swiss-based UBS reported better-than-expected third-quarter profits on Tuesday of 1.018 billion Swiss francs, or 0.27 Swiss francs per share, vs. profits of 828 million Swiss francs, or 0.47 Swiss francs per share, a year ago. In the second quarter, the bank had profits of 1.654 billion Swiss francs, or 0.26 Swiss francs a share.
Net new money from clients worldwide was 4.9 billion Swiss francs, up from 1.2 billion Swiss francs a year ago but down from 8.7 billion Swiss francs in the previous quarter.
The trading loss “was partly offset by an own credit gain of nearly 1,765 million [Swiss francs] and a gain of 722 million [Swiss francs] from the sale of treasury-related investments,” the company said in a press release.
Third quarter net new money for the U.S.-based wealth-management operations, led by Bob McCann, was 4.0 billion Swiss francs (or $4.5 billion) compared with 2.6 billion Swiss francs in the second quarter and 0.3 billion Swiss francs a year ago. These figures exclude dividends and interest.
Year-to-date net new money was $11.6 billion as of September 30 versus outflows of $9 billion in the first nine months of 2010.
“Financial advisors employed with UBS for more than one year and net recruiting of financial advisors contributed to the improvement in net new money,” the bank said in a statement.
Net new money at UBS Americas wealth-management unit, including dividends and interest, was $9.5 billion, up 20% from $7.9 billion in Q2 and up 102% from $4.7 billion in Q3’10. At rival Morgan Stanley, these figures were $15.5 billion in Q3’11, $2.9 billion in Q2’11 and $5 billion in Q3’10.
Advisor Headcount, Assets, Production
The number of financial advisors in the unit rose to 6,913 compared with 6,862 in the second quarter and 6,783 a year ago.