UBS Group AG, Switzerland’s largest bank, reported a net loss of 785 million Swiss francs (₹6,537 crore) in the third quarter of 2023, its first loss since 2017. The loss was driven by a number of factors, including the ongoing semiconductor shortage, which disrupted production and supply chains. UBS also faced increased competition from other banks, such as Credit Suisse and Deutsche Bank.
Semiconductor Shortage
The semiconductor shortage had a significant impact on UBS’s investment banking business, which the company uses to advise clients on mergers and acquisitions. The shortage led to delays in the completion of deals, which impacted revenue.
Increased Competition
UBS also faced increased competition from other banks, such as Credit Suisse and Deutsche Bank. These banks have been investing heavily in new technologies, such as artificial intelligence and machine learning, to stay ahead of the competition.
Outlook
UBS said it expects to return to profitability in the fourth quarter of 2023. The bank said it is taking steps to reduce its costs and improve its margins.
Key Highlights
- Net loss of 785 million Swiss francs (₹6,537 crore) in Q3 2023, first since 2017
- Loss driven by semiconductor shortage, increased competition
- Bank expects to return to profitability in Q4 2023
Statistics
- Net loss of 785 million Swiss francs (₹6,537 crore) in Q3 2023
- Revenue of 8.3 billion Swiss francs (₹67,600 crore) in Q3 2023, down 10% from Q3 2022
- Operating profit of 1.2 billion Swiss francs (₹9,200 crore) in Q3 2023, down 50% from Q3 2022
- Investment banking revenue of 2.5 billion Swiss francs (₹19,200 crore) in Q3 2023, down 20% from Q3 2022
- Wealth management revenue of 5.8 billion Swiss francs (₹48,400 crore) in Q3 2023, down 10% from Q3 2022
UBS CEO’s Comments
UBS CEO Ralph Hamers said the bank was disappointed with the results, but he was confident that the bank would return to profitability in the fourth quarter.
“We are disappointed with our results in the third quarter,” Hamers said. “We are taking steps to reduce our costs and improve our margins, and we are confident that we will return to profitability in the fourth quarter.“
