All articles tagged with #swiss banking
UBS reported a larger-than-expected net loss of $785 million in the third quarter, driven by $2 billion in expenses related to the integration of fallen rival Credit Suisse. The Swiss banking giant's total group revenues increased by 23% to $11.7 billion. UBS completed its takeover of Credit Suisse in June and aims to fully integrate its Swiss banking unit while targeting gross cost savings of at least $10 billion by 2026.
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.
Switzerland's top prosecutor has opened an investigation into potential crimes related to UBS's takeover of Credit Suisse, while the emergency combination of the two banks begins to take shape. The deal signed last month may reduce the overall workforce by up to 30%, with as many as 11,000 cuts in Switzerland and another 25,000 worldwide. UBS has said it estimates that savings of about $6 billion are possible from reducing headcount.
Sergio Ermotti, former CEO of UBS, has been appointed as the new CEO of the bank, replacing Ralph Hamers from April 5. Ermotti's task is to integrate fallen rival Credit Suisse into UBS, which is essential for both banks' clients, people, and investors, for Switzerland and for the global financial system in general. Ermotti's experience in picking UBS up from the canvas after the 2008 financial crisis rendered him uniquely qualified to lead the new combined entity through what promises to be a challenging and drawn-out integration.