UBS third-quarter profit soars, trouncing expectations

STORY: UBS saw net profit surge 74% in the third-quarter.Wednesday's (October 29) announcement was way ahead of market expectations.Revenue flew higher on financial market volatility caused by global tariff issues as well as renewed M&A activity.Net profit came in at $2.5 billion - well ahead of a projected $1.29 billion.A release of legal provisions worth $688 million also contributed to the earnings.Switzerland's largest bank also said it was confident in its plans for $3 billion in share buybacks this year and its financial targets.But the lender did note some uncertainties clouded the Swiss economy's outlook, like a strong Swiss franc and higher U.S. tariffs.UBS expects deal activity to stay healthy in the fourth quarter, but cautioned "sentiment can shift quickly."It added a prolonged U.S. government shutdown could delay capital market activities.UBS further said it aims to appeal a Swiss court decision that the writing off of 16.5 billion Swiss francs in Credit Suisse bonds was unlawful.The bank said it has no plans to make any provisions in relation to the case.European rival Deutsche Bank posted a 7% rise in third-quarter profit Wednesday of up to $1.82 billion.The German lender beat analyst expectations for a drop after its global investment banking division saw a strong increase in revenue.

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