UBS Absorbs Credit Suisse: $10 Billion Savings Forecast & Job Losses in Switzerland – Latest Updates by Noele Illien

2023-08-31 05:44:22

by Noele Illien

ZURICH, Aug 31 (Archyde.com) – UBS said on Thursday the group would fully absorb Credit Suisse, a move that comes despite a likely negative backlash in Switzerland, where it might lead to the loss of thousands of jobs.

The world’s largest wealth manager has raised the amount of savings it expects from the deal, forecasting $10 billion by the end of 2026, up from a previous estimate of $8 billion. by 2027. Most of the savings are expected to come from downsizing.

This highly anticipated announcement was made simultaneously with the release of UBS’s first results since taking over its struggling rival.

Credit Suisse reported net asset outflows of 39 billion Swiss francs (40.67 billion euros) for the second quarter, showing that the bailout by UBS failed to stem the loss of confidence.

UBS for its part posted a net profit of 29 billion dollars for the second quarter.

This profit is linked to an exceptional gain which reflects the fact that the acquisition costs were well below the value of Credit Suisse. It is slightly lower than the estimate at 33.45 billion dollars, according to a consensus established by the company. (Report Noele Illien; French version Nathan Vifflin, edited by Kate Entringer)

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