By Noele Illien

ZURICH (Reuters) -UBS logged a smaller-than-expected 24% slide in third-quarter net profit with robust client inflows and lower costs helping to ameliorate the impact of turbulent financial markets.

The Swiss bank attracted $17 billion in net new fee generating assets in wealth management and $18 billion of net new money in asset management, with strong performances from all major regions.

“The focus in the results should fall on the very positive net new money in Wealth Management, said analysts at ZKB.

Shares in UBS surged 4.9% in early trade.

Net profit attributable to shareholders fell to $1.73 billion, ahead of $1.53 billion forecast by 17 analysts in a company-gathered consensus.

Revenue came in $8.2 billion, a 10% drop from the same quarter a year earlier.

Investment banking was particularly hard hit by financial market turmoil with revenues in its global banking division, which advises on deals and capital raisings, plunging 58%. Global markets revenues, however, fell only 1%, with derivatives benefiting from increased volatility including in foreign exchange.

UBS also said it is targeting share buybacks of around $5.5 billion this year.

It had said in September it planned to increase its dividend by 10% and expected 2022 share repurchases to exceed its $5 billion goal, boosting payouts from its strong balance sheet after scrapping a $1.4 billion deal to buy U.S. group Wealthfront, an automated wealth management provider.

“We remain confident in our ability to deliver attractive and sustainable capital returns to shareholders,” Chief Executive Ralph Hamers said in a statement.

The results follow a mixed quarter for big U.S. banks.

HSBC, also reporting on Tuesday, said profits slid 42% in the third quarter due to rising loan losses and asset sales. Rival Credit Suisse reports on Thursday, when it is also due to unveil details of strategic overhaul.

(Reporting by Noele Illien; Editing by Michael Shields and Edwina Gibbs)