The bank, which suffered a $715 million loss in the same period last year after the forced takeover of Credit Suisse, posted a five percent increase in revenue to $12.3 billion, it said.

The results significantly exceeded expectations, with analysts polled by the Swiss agency AWP expecting a profit of $758 million on revenue of $11.5 billion.

UBS shares rose more than two percent in morning trading.

UBS said current conditions should continue in the fourth quarter “against the backdrop of anticipation of a soft landing for the US economy”.

“The macroeconomic outlook, on the other hand, is looking gloomier in the rest of the world,” the bank said, stressing that uncertainties related to geopolitical conflicts and the US election “could affect investor behavior.”

The bank saw revenues climb by four percent in its wealth management activities, and by 22 percent in its investment bank.

During the quarter, it also achieved an additional $800 million in savings, saying it was “ahead of schedule for the financial and operational integration” of Credit Suisse.

In 2023, the banking giant was forced to buy its former rival under pressure from Swiss authorities to avoid a bankruptcy of what was then the second largest bank in Switzerland.

In addition to cleaning up Credit Suisse’s investment bank whose bad bets which irreparably damaged its reputation, UBS faces huge challenges in integrating the bank.

It has been migrating client accounts on a country-by-country basis, with the transfer of the major retail Swiss operation set for next year.

“The migration of data of 1.3 mn clients poses the next big challenge,” said Vontobel analyst Andreas Venditti.

“However, the first wave of client account migrations has been completed successfully and the bank has (so far) been ahead of schedule on issues it can control,” he added.