UBS Group AG on Tuesday reported a surprise rise in fourth-quarter profit as its wealth-management arm attracted billions in new client money, despite difficult macroeconomic headwinds.
The Swiss bank UBS, -0.75% UBSG, +0.46% reported a net profit of $1.65 billion in the three months to the end of December, up from $1.35 billion for the same period a year earlier.
Revenue was $8.03 billion compared with $8.71 billion in the fourth quarter of 2021.
It meant the Zurich-based bank beat 4Q estimates of net profit of $1.28 billion and revenue at $7.98 billion, according to analysts’ consensus provided by the company.
UBS said it took on $23.3 billion in net new fee-generating assets at its key wealth-management business in the quarter, at a time when its local rival Credit Suisse Group AG had struggled with a flight of assets.
The bank also cited persistent inflation, rapid central-bank tightening, the Ukraine war, and geopolitical tensions that affected asset-pricing levels and investor sentiment in the year.
UBS said it would propose a dividend of $0.55 for 2022.
The lender said it would remain committed to a progressive dividend and expects to repurchase more than $5 billion of shares in 2023.
Write to Ed Frankl at [email protected]
