Third quarter 2005 pre-tax profits for UBS’s wealth management business outside of the US came in at SFr1.1 billion ($903.2 million), up 21 ...

Third quarter 2005 pre-tax profits for UBS’s wealth management business outside of the US came in at SFr1.1 billion ($903.2 million), up 21 per cent from the second quarter, according to the bank’s results statement. UBS said the strong profit surge was due to rising asset-based fees and higher client activity, as well as increasing interest income. Lower expenses also drove up profits, the bank said. The international wealth management business, excluding Switzerland, recorded a SFr19.2 billion in net new money, while the Swiss wealth management business saw an inflow of SFr1.9 billion. Funds under management within the international wealth management business rose 6 per cent quarter-on-quarter to SFr 944 billion. The record net new money inflow, positive market performance, and the US dollar's 1 per cent gain against the Swiss franc all contributed to the increase, the bank said. Approximately 35 per cent of invested assets are denominated in US dollars. Wealth Management USA recorded a pre-tax loss of SFr5 million, compared to a pre-tax profit of SFr94 million in second quarter. UBS said the numbers were affected by a steep rise in litigation provisions in third quarter, which offset the positive effect of record US dollar recurring revenues and increased transactional income. The inflow of net new money for the US business was SFr9.9 billion in the third quarter, up strongly from SFr1.8 billion in second quarter 2005. Total funds under management were up 5 per cent quarter-on-quarter to SFr728 billion. The bank said the integration process of the wealth management business in the US is progressing well. “After a smooth transfer, the US-based wealth management business is now operating alongside the international and Swiss businesses as part of one global wealth management franchise,” the bank said in its results statement. Including the record inflows of SFr19.9 billion into the asset management business, net new money for the whole of UBS in the third quarter was SFr51.2 billion. Total funds under management stood at SFr2,666 billion on 30 September 2005, 6 per cent above the level at the end of second quarter, and 20 per cent higher than the same date a year earlier.