UBS's Blowout Earnings Spark Optimism and Job Cuts

UBS reported a "historic" earnings report, with second-quarter net profit of $28.88 billion, largely driven by negative goodwill from its acquisition of Credit Suisse. UBS shares rallied to 15-year highs, but Deutsche Bank cautioned that UBS may still be a "construction site" for some time. UBS plans to fully integrate Credit Suisse's Swiss banking unit by 2024, resulting in 1,000 redundancies and a further 2,000 job cuts. UBS highlighted the reversal of net asset and deposit outflows at Credit Suisse and a strong CET1 ratio. Analysts praised the stabilization and de-risking of UBS, but emphasized the need for further wind-down of noncore divisions and clarity on the bank's CET1 ratio.