UBS Third-Quarter Pretax Profit Climbs 27% to $3.59 Billion on Strong Wealth Inflows

UBS reported a pretax profit of almost $3.6 billion for the third quarter, a 27% rise from the same period a year earlier. The result was largely in line with consensus forecasts, according to figures released by the Swiss banking and asset management group on Wednesday.

Net profit for the quarter came to $2.7 billion, which also matched analyst estimates. The Zurich-based lender's common equity tier 1 capital ratio, a gauge of a bank's solvency, stood at 14.7%, compared with 14.4% in the previous quarter.

Performance was supported by robust demand in the bank's global wealth management arm. Net new assets reached $55.1 billion by the end of the quarter, and UBS recorded $12.5 billion in client commitments across its wealth management and asset management businesses.

In its earnings statement, UBS said the integration of Credit Suisse is "firmly on track" to be finished by the end of the year. The bank expects cumulative cost savings of $13.7 billion from the process, ahead of the $13.5 billion it had previously anticipated.

The bank remains in a dispute with the Swiss government over proposals for tougher capital buffers. The measures are meant to shield taxpayers from any future banking crisis and from contagion originating in the bank's foreign subsidiaries, following the Credit Suisse debacle. UBS is regarded as systemically important to the Swiss economy.

Last month, the upper house of the Swiss parliament voted to require UBS to hold 90% of its Common Equity Tier 1 capital, equivalent to roughly $16 billion in additional shares, as backing for its foreign subsidiaries. The current level is about 45%, and UBS has said it wants the figure to be no higher than 50%.

Speaking to CNBC's "Squawk Box Europe" on Wednesday, Ermotti said clients expect the bank to be competitive. "90% would not, long-term, allow us to be a competitive player," he told CNBC's Carolin Roth. "I'm very concerned about this development."

In an earlier statement, Ermotti said the strong quarter highlights the benefits of UBS' diversified global business model. He added that the lender remains "strategically committed to its diversified business model and its global and regional footprint."