Swiss banking giant UBS has reported better-than-expected underlying profit for the third quarter, causing its shares to climb. The bank recorded an underlying operating profit before tax of $844 million, well ahead of consensus expectations. However, UBS also posted a larger-than-anticipated net loss of $785 million due to expenses related to the integration of fallen rival Credit Suisse. Despite this, total group revenues increased by 23% from the previous quarter. UBS CEO Sergio Ermotti highlighted the improved performance across various sectors, including Wealth Management and Asset Management. The bank also saw strong inflows from clients.

Analysts at Citi noted that UBS’s profit figure was notably ahead of prior company guidance and consensus forecasts. The beat was driven by lower operating expenses and slightly higher revenues. The acceleration of Wealth Management net new money inflows in September was also seen as encouraging. UBS is currently in the process of integrating Credit Suisse’s Swiss banking unit and aims to achieve gross cost savings of at least $10 billion by 2026.

UBS reported net new deposits of $33 billion, with $22 billion coming from Credit Suisse clients. The bank also announced positive deposit inflows for its Personal and Corporate Banking divisions in September. As part of the integration plans, UBS is expected to reduce a significant portion of Credit Suisse’s workforce.