This post was originally published on this site
UBS Group on Tuesday was on track to finish at its highest level in more than three years as the Swiss banking giant recorded a stronger-than-forecast third-quarter profit.
UBS
UBSG,
UBS,
shares edged up 0.2% after reporting a 9% profit rise and launching a $600 million stock buyback. It saw $19 billion in wealth management inflows during the period, which Bank of America analyst Alastair Ryan said occurred in a seasonally weak quarter. The analyst said the operating leverage brought the cost-to-income ratio down to 70%, which he said was better than for many years.
Morgan Stanley analysts led by Magdalena Stoklosa said the revenue showing was particularly strong in global wealth management, Switzerland and investment banking. She called the bank “inexpensive” at 10 times estimated 2022 earnings, or 1.1 times estimated price-to-tangible net asset value.
The stock has jumped 31% this year.
European stocks more broadly advanced, with most sectors apart from energy and healthcare gaining ground.
The Stoxx Europe 600
SXXP,
rose 0.5% to 474.70. Of the major regional indexes, the German DAX
DAX,
gained 0.9%, the French CAC 40
PX1,
increased 0.7% and the U.K. FTSE 100
UKX,
increased 0.6%.
Reckitt Benckiser
RKT,
was another standout, leaping 6% as the maker of Dettol and Lysol upgraded its revenue outlook for the year by a percentage point, to a 1% to 3% growth range, after like-for-like sales growth of 3.3% in the third quarter.
Entain
ENT,
shares tumbled 10% as DraftKings
DKNG,
ended talks to buy it. Entain operates the BetMGM venture with MGM Resorts
MGM,
