The company reported income before taxes of CHF 1.3bn (£0.85bn, €1.1bn, $1.4bn) compared to a loss of CHF 370m in the second quarter, while its income attributable to shareholders reached CHF 1.03bn, up from a previous loss of CHF 700m.
Meanwhile, its total operating expenses also dropped significantly, falling to CHF 5.2bn from CHF 6.8bn.
The company’s drop in performance during the second quarter came on the back of a CHF 1.6bn settlement paid to settle all of its outstanding US cross-border matters.
In the third quarter the company saw net revenues increase 20% on Q3 2013 to reach CHF 6.5bn, while its total operating expenses reached CHF 5.1bn, up 10% on the same period.
The bank’s private banking and wealth management division saw a particularly strong quarter, with income before taxes of CHF 943m, a marked increase on the pre-tax loss of CHF 749m it saw in Q2.
In its so-called “strategic businesses”, the division reported income before taxes of CHF 872m, an increase of 8% on Q3 2013, as well as net revenues of CHF 2.9bn, which it described as “stable”.
“Sustained growth”
Chief executive, Brady Dougan, said: “Our profitability benefitted from ongoing cost discipline, although margins remain subdued and revenues continue to be impacted by the low interest-rate environment.
Dougan added that the company’s strong emerging market growth in areas such as Asia Pacific had been offset by continued outflows from the Western European cross-border business, but added that the company has seen “sustained growth” in is ultra-high-net-worth individual lending initiative.
Despite this, he said that the company has experienced a “mixed start” to October, claiming recent market volatility has benefitted some of its businesses whilst negatively affecting others.
“We have a strong advisory and underwriting pipeline, but the pace of execution in the fourth quarter will depend on market conditions,” he added.
