NEW YORK (TheStreet) -- Shares of UBS AG (UBS) - Get Report are up 6.35% to $17.26 after reporting 2014 third quarter results with a net profit of 762 million Swiss francs and diluted earnings per share of 20 rappen, compared to 577 million Swiss francs and diluted earnings per share of 15 rappen for the same period a year ago.
"As a consequence of our strong capital position and earnings power, we have every confidence in our ability to deliver on our capital return," the company said.
The result included net charges of 1,8 billion Swiss francs related to provisions for litigation, regulatory and similar matters.
Vontobel analyst Andreas Venditti said that despite the big legal provisions, UBS was nonetheless able to improve its capital ratio, a measure of stability closely watched by regulators and likely to influence the bank's decision making on returning capital to shareholders, according to the Wall Street Journal.
"This shows that capital ratios can still increase, despite big charges," Venditti told the Journal.
Separately, TheStreet Ratings team rates UBS AG as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UBS AG (UBS) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins."
You can view the full analysis from the report here: UBS Ratings Report