Listen to the audio version of the article
UBS reported net profit of $29 billion in the second quarter of 2023. The result, UBS explained in a press release, was achieved despite the loss of 8.9 billion Swiss francs of the subsidiary Credit Suisse following the collapse of part of its activities, linked to uncertainties about its future after the acquisition by of Ubs in March this year. The result includes an accounting profit of the same amount resulting from the acquisition of Credit Suisse, the banking giant indicated in a note today
Thanks to the merger, Ubs added, the banking group hopes to achieve 10 billion dollars in savings by the end of 2026. In the note released today Ubs also announced its intention to “fully integrate” Credit Suisse in Switzerland and that the brand of the acquired bank will disappear. The consequences of the operation on jobs were not immediately revealed.
“Full integration will strengthen the strengths that make UBS the leading bank in Switzerland”, while preserving competition on the Swiss market, CEO Sergio Ermotti said in a statement.
The numbers
According to what was communicated by UBS, the bank therefore recorded a quarterly net profit of 29 billion dollars, before a negative goodwill of 29 billion linked to the acquisition of Credit Suisse against risk-weighted assets recognized for 238 billion . The underlying pre-tax profit was 1.1 billion (one billion euros), of which 2 billion came from the affiliated company. The solid capital base was maintained with a Cet1 capital ratio of 14.4% and the Cet1 financial leverage ratio of 4.8%.