A brand of Swiss financial institution UBS is seen in Zurich, Switzerland March 29, 2023.
Denis Balibouse | Reuters
UBS on Tuesday reported a bigger-than-expected third-quarter web lack of $785 million as it really works to combine fallen rival Credit score Suisse.
Analysts polled by Reuters had anticipated the Swiss banking big would report quarterly web lack of $444 million in a company-compiled ballot.
The loss was pushed by $2 billion in bills associated to the Credit score Suisse integration, with the financial institution recording an underlying working revenue earlier than tax of $844 million.
Listed here are another highlights:
- Whole group revenues have been $11.7 billion, up 23% from $9.54 billion within the second quarter.
- CET1 capital ratio, a measure of financial institution liquidity, was 14.4%, unchanged from the earlier quarter.
UBS accomplished its takeover of its stricken home rival in June and introduced in August that it had ended a 9 billion Swiss franc loss safety settlement and a 100 billion Swiss franc public liquidity backstop that have been put in place when the emergency rescue was agreed in March.
The financial institution’s shares soared to their highest level since late 2008 in August after its second quarter earnings outcomes reported a $28.88 billion web revenue on account of adverse goodwill on the Credit score Suisse acquisition.
Destructive goodwill represents the truthful worth of belongings acquired in a merger over and above the acquisition worth. UBS paid a reduced 3 billion Swiss francs ($3.33 billion) to amass Credit score Suisse in March, in a deal mediated by Swiss authorities to forestall the collapse of the storied however scandal-plagued lender.
The inventory worth has since moderated barely, however stays up greater than 27% on the yr.
UBS can be within the technique of absolutely integrating Credit score Suisse’s Swiss banking unit — a key revenue heart — and is predicted to chop a hefty proportion of the legacy financial institution’s workforce.
The financial institution additionally introduced earlier this yr that it’s concentrating on gross price financial savings of a minimum of $10 billion by 2026, when it hopes to have accomplished the mixing all of Credit score Suisse Group’s companies.
