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Net profit of $1.4 bln beats consensus of $740 mln

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Revenue of $12.3 bln ahead of consensus of $11.5 bln

(Adds details, comment, paragraphs 6-8)

By Dave Graham

ZURICH, Oct 30 (Reuters) - UBS Group posted

third-quarter profit that was almost double expectations,

reducing costs and boosting revenues and said it had completed

the first wave of client migrations from Credit Suisse since

acquiring its old rival last year.

Net profit attributable to shareholders at Switzerland's

largest bank was $1.4 billion compared with the $740 million

estimated by analysts in a company-provided poll.

Operating expenses were $10.3 billion in the quarter,

down from more than $11.6 billion in the same period a year

earlier. Group total revenue came in at $12.3 billion, ahead of

a consensus figure of $11.5 billion.

"Against a market backdrop that, while constructive, still

exhibited periods of high volatility and dislocation, our

business delivered impressive revenue growth as we maintained

strong client momentum, particularly in the Americas and APAC,"

UBS CEO Sergio Ermotti said in a statement.

"We continue to significantly mitigate execution risk as we

progress on the integration of Credit Suisse while remaining

disciplined in driving our cost and efficiency targets."

UBS said it expected market conditions to be similar during

the fourth quarter, aided by the prospect of a soft landing in

the U.S. economy. But it noted that the macroeconomic outlook in

the rest of the world remained clouded.

"In addition to seasonality...ongoing geopolitical conflicts

and the upcoming U.S. elections are creating uncertainties that

are likely to affect investor behavior," it said.

In May, UBS formally completed the merger with its long-time

rival Credit Suisse, which collapsed last year following a

string of financial setbacks and scandals.

UBS is pushing ahead with the integration of Credit Suisse,

and Ermotti said last month the bank was running ahead of

schedule with its efforts to cut costs and absorb its old rival.

The bank recently began migrating clients from Credit Suisse

onto its own platforms, a process that Ermotti last week said

would likely take about 18 months.

UBS said it had successfully completed the first wave of

client account migrations with transfers in Luxembourg and Hong

Kong during October and that Singapore and Japan were expected

by year-end. Switzerland would follow next year, it added.

Investors have welcomed the takeover, with UBS shares up

well over 60% since it bought Credit Suisse in March 2023.

Uncertainty continues to dog UBS though because markets are

waiting to see how tough new regulations for the bank sketched

out by Swiss authorities earlier this year turn out to be.

The government wants UBS and other systemically relevant

banks to hold more capital in order to prevent the risk of

another Credit Suisse-style collapse in future.

UBS and the country's banking lobby have pushed back against

this, warning that saddling lenders with excessive burdens could

make the sector less competitive and hurt business.

Swiss financial market regulator FINMA has also ordered UBS

to improve its emergency and recovery plans following the demise

of Credit Suisse, an event which shook confidence in Swiss

banking among some wealthy clients, a recent study showed.