ZURICH: UBS posted a larger-than-expected loss within the third quarter on Tuesday, the primary quarterly drop since 2017 because it integrates Credit score Suisse after taking on its fallen Swiss banking rival.
Switzerland’s largest financial institution mentioned the online loss within the third quarter stood at $785 million (732 million euros). Analysts surveyed by the AWP information company had been anticipating a smaller lack of $430 million.
The final time it was within the pink was within the fourth quarter of 2017.
UBS, nevertheless, mentioned that it had “now stabilised Credit score Suisse and continued to develop our franchise” because it raked in $22 billion in internet new cash into its wealth administration enterprise within the quarter.
UBS was strong-armed by Swiss authorities into shopping for Credit score Suisse for $3.25 billion in March over issues that its home rival might go underneath and spark a worldwide monetary disaster.
On the time, buyers had gasped on the dangers UBS was taking over with the acquisition.
However by August, the financial institution mentioned it could not want the billions in assist provided by the Swiss authorities and central financial institution to offset any surprises that may pop up in its stricken rival’s accounts.
UBS mentioned that the third quarter included integration-related bills of $2 billion between July and September.
The financial institution mentioned it had provided $500 million to “chosen staff” of Credit score Suisse previous to the acquisition with the intention to persuade them to remain on board.
“We’re executing on the combination of Credit score Suisse at tempo and have delivered underlying profitability for the Group within the first full quarter because the acquisition,” UBS Chief Govt Officer Sergio Ermotti mentioned in an announcement.
– ‘Clear progress’ –
Regardless of the loss, UBS shares jumped by greater than three p.c in morning offers on the Swiss inventory alternate as analysts mentioned the financial institution’s general outcomes have been constructive.
The financial institution reported an underlying revenue earlier than tax of $800 million.
Credit score Suisse posted a constructive influx of internet new cash for the primary time because the first quarter of 2022 at $3 billion.
UBS additionally mentioned internet new deposits totalled $33 billion, with $22 billion coming from Credit score Suisse purchasers.
“UBS has made clear progress because the shut of the deal — nevertheless it continues to face an enormous process,” mentioned Andreas Venditti, analyst at Vontobel wealth administration agency.
The challenges embrace retaining purchasers and key workers together with deep restructuring and price reducing, he mentioned.
“This may require important time and administration consideration,” Venditti mentioned.
UBS mentioned in August it plans to completely soak up Credit score Suisse’s century-old Swiss division and slash 3,000 jobs throughout the nation.
It goals to finish a lot of the integration by the top of 2026, with greater than $10 billion in price financial savings by then.
Switzerland’s largest financial institution mentioned the online loss within the third quarter stood at $785 million (732 million euros). Analysts surveyed by the AWP information company had been anticipating a smaller lack of $430 million.
The final time it was within the pink was within the fourth quarter of 2017.
UBS, nevertheless, mentioned that it had “now stabilised Credit score Suisse and continued to develop our franchise” because it raked in $22 billion in internet new cash into its wealth administration enterprise within the quarter.
UBS was strong-armed by Swiss authorities into shopping for Credit score Suisse for $3.25 billion in March over issues that its home rival might go underneath and spark a worldwide monetary disaster.
On the time, buyers had gasped on the dangers UBS was taking over with the acquisition.
However by August, the financial institution mentioned it could not want the billions in assist provided by the Swiss authorities and central financial institution to offset any surprises that may pop up in its stricken rival’s accounts.
UBS mentioned that the third quarter included integration-related bills of $2 billion between July and September.
The financial institution mentioned it had provided $500 million to “chosen staff” of Credit score Suisse previous to the acquisition with the intention to persuade them to remain on board.
“We’re executing on the combination of Credit score Suisse at tempo and have delivered underlying profitability for the Group within the first full quarter because the acquisition,” UBS Chief Govt Officer Sergio Ermotti mentioned in an announcement.
– ‘Clear progress’ –
Regardless of the loss, UBS shares jumped by greater than three p.c in morning offers on the Swiss inventory alternate as analysts mentioned the financial institution’s general outcomes have been constructive.
The financial institution reported an underlying revenue earlier than tax of $800 million.
Credit score Suisse posted a constructive influx of internet new cash for the primary time because the first quarter of 2022 at $3 billion.
UBS additionally mentioned internet new deposits totalled $33 billion, with $22 billion coming from Credit score Suisse purchasers.
“UBS has made clear progress because the shut of the deal — nevertheless it continues to face an enormous process,” mentioned Andreas Venditti, analyst at Vontobel wealth administration agency.
The challenges embrace retaining purchasers and key workers together with deep restructuring and price reducing, he mentioned.
“This may require important time and administration consideration,” Venditti mentioned.
UBS mentioned in August it plans to completely soak up Credit score Suisse’s century-old Swiss division and slash 3,000 jobs throughout the nation.
It goals to finish a lot of the integration by the top of 2026, with greater than $10 billion in price financial savings by then.
