*

Net profit up 74% to $2.5 billion vs consensus for $1.29

billion

*

UBS to appeal court decision on Credit Suisse AT1 bond

write-off

*

Macro uncertainties, prolonged US government shutdown

cloud

outlook

(Recasts and writes through)

By Ariane Luthi

ZURICH, Oct 29 (Reuters) - UBS said

third-quarter net profit surged 74%, comfortably beating

expectations as revenue shot higher on financial market

volatility caused by global tariff turmoil as well as renewed

M&A activity.

Switzerland's largest bank also said it was confident in its

plans for $3 billion in share buybacks this year as well as its

financial targets for 2026. It noted, however, that macro

uncertainties, a strong Swiss franc and higher U.S. tariffs were

clouding the outlook for the Swiss economy.

UBS expects deal activity to remain healthy in the fourth

quarter, but said "sentiment can shift quickly as confidence in

the outlook is tested."

A prolonged U.S. government shutdown could delay capital

market activities, it added.

UBS also said it intends to appeal a Swiss court decision,

already challenged by Swiss market regulator FINMA, that the

writing off of 16.5 billion Swiss francs in Credit Suisse bonds

was unlawful. The bank has no plans to make any provisions in

relation to the case, UBS said.

Net profit came in at $2.5 billion. That trumped a consensus

estimate of $1.29 billion and marked its best result since

one-off factors related to the integration of former rival

Credit Suisse led to a profit of over $27 billion in the second

quarter of 2023.

A release of legal provisions worth $688 million also

contributed to the earnings beat. They were mainly related to

the resolution of Credit Suisse's residential mortgage-backed

securities business and a UBS case in France.

UBS attracted $38 billion in net new money to its global

wealth management division and $18 billion to asset management,

bringing total invested assets close to $7 trillion.

Strong inflows from Asia more than offset outflows in the

Americas, where UBS this week applied for a U.S. banking

license.

In UBS's investment banking division, revenues jumped

52% year-on-year in global banking and 14% in trading, marking a

record third quarter for both these business areas as

deal-making activity resumed.

Integration of Credit Suisse further progressed, UBS said,

adding that over two-thirds of Swiss-booked client accounts have

been migrated.