UBS Group AG reported a mix of good and bad news in its latest quarterly results, its last under the leadership of CEO Sergio Ermotti, who steps down next month.
For the third quarter of 2020, its Global Wealth Management had pretax profits of $1.06 billion, up 18% from last year and ahead of analysts’ estimates of $912 million.
In the Americas, this figure improved 12% from a year ago to $371 million.
But net new assets worldwide were just $1.4 billion in Q3’20, down 91% from $15.7 billion a year ago and 85% from $9.2 billion in the prior quarter. Still, the latest asset inflows beat net outflows of $262 million forecast by analysts, according to Bloomberg.
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In the Americas, the wealth operations had outflows of $9.2 billion vs. no inflows (or outflows) a year ago and inflows of $100 million in the prior quarter of 2020.
These results stemmed in part from the extended tax return deadline of July 15 in the U.S., which affected some $5.5 billion of tax-related outflows, Bloomberg reported.
In the same period, rival Morgan Stanley reported fee-based flows of $23.8 billion in its wealth operations, while BofA’s wealth unit had $1.4 billion of overall net flows.