Analyst Note| Johann Scholtz, CFA |
Narrow-moat UBS booked a net attributable profit of $2.3 billion for third-quarter 2021, 9% higher than the $2 billion it reported in 2020. A capital gain of $631 million inflated the 2020 third-quarter base, and the normalised increase was even more impressive. The consensus of analysts polled by UBS expected only $1.6 billion for the quarter--a 43% earnings beat. We increase our fair value estimate to CHF 19/share from CHF 16/previously on the back of these strong results. We maintain our narrow moat rating.