UBS has posted a internet revenue of $28.8 billion for the second quarter of 2023, which got here with its first quarterly numbers after finishing the takeover of rival Credit score Suisse. The astronomical quantity was reached attributable to a one-off acquire with decrease acquisition prices than the worth of Credit score Suisse.
In keeping with the official numbers posted at this time (Thursday), the Swiss generated a complete income of $9.5 billion in opposition to the earlier quarter’s $8.7 billion. After “damaging goodwill” of $28.9 billion from the Credit score Suisse acquisition, its working revenue swelled to over $29.2 billion. Its underlying pre-tax revenue, which excludes damaging goodwill, integration-related bills, and acquisition prices, got here in at $1.1 billion.
The web revenue of UBS was $1.02 billion within the first quarter of the yr and $2.1 billion within the second quarter of the earlier yr. There was a 52 % annual drop in Q1 internet revenue attributable to litigation prices associated to US mortgage-backed securities.
“Two and a half months since closing the Credit score Suisse acquisition, we’re losing no time in delivering worth for all our stakeholders from one of many largest and most advanced financial institution mergers in historical past,” stated UBS CEO Sergio Ermotti.
“We’re profitable again the belief of purchasers, decreasing prices, and taking the mandatory actions to create economies of scale that can permit us to raised focus our assets and goal investments for future progress.”
UBS to Take in Credit score Suisse
Together with the financials, UBS additionally revealed that it might absolutely take in Credit score Suisse’s home banking unit. The merger is predicted to shut in 2024.
“Our evaluation clearly exhibits that full integration is the very best consequence for UBS, our stakeholders, and the Swiss financial system,” added Ermotti. “Purchasers will proceed to obtain the premium degree of service they anticipate, benefiting from enhanced choices, professional capabilities, and world attain.”
UBS purchased its arch-rival Credit score Suisse final March for 3 billion Swiss francs in a hasty deal pushed by the Swiss authorities. The authorities wished to keep away from a banking disaster within the nation and granted an emergency greenlight that bypassed the shareholders’ approvals of each banks.
Nonetheless, many feared {that a} merger would end result within the lack of 1000’s of jobs.
Moreover, UBS is anticipating cost-savings of about $10 billion by the top of 2026 from the deal, which went up from an earlier estimate of $8 billion by 2027. Many of the financial savings would end result from the lowered headcount.
UBS has posted a internet revenue of $28.8 billion for the second quarter of 2023, which got here with its first quarterly numbers after finishing the takeover of rival Credit score Suisse. The astronomical quantity was reached attributable to a one-off acquire with decrease acquisition prices than the worth of Credit score Suisse.
In keeping with the official numbers posted at this time (Thursday), the Swiss generated a complete income of $9.5 billion in opposition to the earlier quarter’s $8.7 billion. After “damaging goodwill” of $28.9 billion from the Credit score Suisse acquisition, its working revenue swelled to over $29.2 billion. Its underlying pre-tax revenue, which excludes damaging goodwill, integration-related bills, and acquisition prices, got here in at $1.1 billion.
The web revenue of UBS was $1.02 billion within the first quarter of the yr and $2.1 billion within the second quarter of the earlier yr. There was a 52 % annual drop in Q1 internet revenue attributable to litigation prices associated to US mortgage-backed securities.
“Two and a half months since closing the Credit score Suisse acquisition, we’re losing no time in delivering worth for all our stakeholders from one of many largest and most advanced financial institution mergers in historical past,” stated UBS CEO Sergio Ermotti.
“We’re profitable again the belief of purchasers, decreasing prices, and taking the mandatory actions to create economies of scale that can permit us to raised focus our assets and goal investments for future progress.”
UBS to Take in Credit score Suisse
Together with the financials, UBS additionally revealed that it might absolutely take in Credit score Suisse’s home banking unit. The merger is predicted to shut in 2024.
“Our evaluation clearly exhibits that full integration is the very best consequence for UBS, our stakeholders, and the Swiss financial system,” added Ermotti. “Purchasers will proceed to obtain the premium degree of service they anticipate, benefiting from enhanced choices, professional capabilities, and world attain.”
UBS purchased its arch-rival Credit score Suisse final March for 3 billion Swiss francs in a hasty deal pushed by the Swiss authorities. The authorities wished to keep away from a banking disaster within the nation and granted an emergency greenlight that bypassed the shareholders’ approvals of each banks.
Nonetheless, many feared {that a} merger would end result within the lack of 1000’s of jobs.
Moreover, UBS is anticipating cost-savings of about $10 billion by the top of 2026 from the deal, which went up from an earlier estimate of $8 billion by 2027. Many of the financial savings would end result from the lowered headcount.
