Ubs, record profits with the rescue of Credit Suisse. In Switzerland, the brand name of the acquired bank will disappear

MILAN – Never had a bank made so much money in one quarter, as happened in the second period of 2023 for ubs. Twenty nine billion dollars, practically an Italian financial manoeuvreare actually the accounting fruit of the emergency acquisition of the Credit Suisse. Which, according to the institution that has ‘eaten’ its shaky neighbor, will be completely integrated within the next year, as regards domestic activities, with the prospect of the losing brand disappearing.

As detailed in the Bloomberg, the profit of 29 billion dollars it is the result of the accounting difference between the price of 3.8 billion dollars paid by UBS for Credit Suisse and the book value of the acquired bank. Now Ubs has about $5 trillion in client assets, a truly global asset management giant.

The CEO of UBS, Sergio Ermotti, is grappling with one of the most complex mergers in the banking world ever. The bank of Zurich has detailed that it expects these results from the operation: a cost savings of over 10 billion dollars by the end of 2026; that in the quarter UBS recorded 16 billion in net new capital inflows, while Credit Suisse saw outflows slow to 44.4 billion. “This combination will strengthen our status as a tier-one global company, of which our Swiss domestic market can be proud,” Ermotti explained to the earnings publication on Thursday. “We are honored by this task and the responsibility that has been entrusted to us”. For now, the market is trusting him: UBS is up 30% since the beginning of the year, the best among the big banks. And its earnings record eclipses JPMorgan’s 14.3 billion profits in the first quarter of 2021. And the market toasts: the stock rose to its highest level since 2008 in the morning.

However, there are no shortage of headaches. Now, after months of rumors and speculation, it becomes clear that the future of Credit Suisse’s formerly flagship domestic unit is out of sight: The two banks will operate separately until a legal merger scheduled for 2024, he said. said Ubs. And the Credit Suisse brand will remain in force until customers switch to UBS systems, expected in 2025. There is great concern on the part of trade unions and part of politics, for the fate of the workers.