Swiss bank UBS has reported a strong fourth quarter, beating expectations due to higher interest rates. UBS reported a net profit of USD 7.6 billion, a 17.0% return on CET1 capital, and a 23% increase in profits compared to the same period last year.

UBS Chairman Axel Weber said the bank was “pleased” with the results, but sounded a cautious note for the year ahead. Weber said that while the higher interest rates had been beneficial to the bank, it was still feeling the effects of the global economic slowdown.

The bank’s Chief Financial Officer Kirt Gardner said the bank had managed to offset the slowdown in trading with higher interest rates, which had helped to boost profits. Gardner said the bank was “cautiously optimistic” about the year ahead, but said that it would remain focused on cost containment and efficient capital allocation.

UBS’s strong fourth quarter results come as the bank continues to invest in its digital capabilities and expand its services to clients. The bank is also investing in its sustainability efforts, with a focus on reducing its carbon footprint and investing in renewable energy.

Overall, UBS’s fourth quarter results show that the bank is continuing to make progress in its efforts to remain competitive in an increasingly challenging global market.