2023-11-07 08:38:16
UBS boss Sergio Ermotti: UBS is digesting the CS better than expected.
Photo: Salvatore Die Nolfi (Keystone)
The megabank is slowly taking shape. UBS has presented the first interim results in which Credit Suisse is completely included. The fallen competitor has left her mark again. While there was a special profit of $29 billion in the first quarter after the takeover, the fallen bank is now making a loss of $800 million – more than experts expected.
Is UBS choking on CS? There are currently no signs of this. In the last quarter, the bargain price that UBS had to pay for CS caused a jump in profits. The current result shows once again how high the costs are at Credit Suisse.
And if there is still justified criticism of the rescue plan, with which CS was handed over to UBS at a low price, it now shows that he has achieved one of his goals: there is trust in the bank. The combined bank is attracting more assets again. Even in the CS division, customer deposits are growing and profits are increasing in the Swiss business.
It seems as if UBS deliberately stacked its stocks low in the summer in order to now exceed expectations.
The result also shows that UBS is paying off CS’s legacy faster than analysts expected. The risk positions on UBS’s balance sheet are significantly smaller than the experts had expected. This means that UBS has achieved an important goal that was actually set for the end of the year much earlier than originally announced. What the CS managers haven’t managed for years can be done in a very short time under Sergio Ermotti.
It almost seems as if UBS deliberately stacked the deck low in the summer in order to now exceed expectations regarding the progress of the integration.
It is also clear that the bank’s expenses will continue to fall. In the financial industry, employee salaries are the easiest adjustment screw. The megabank continues to employ 116,000 people. But 4,000 jobs were lost in the last quarter alone. Compared to the end of 2022, there are already 13,000 fewer jobs.
This clearly shows that the dismissal of. announced in the summer 3000 employees in Switzerland is only a small part of the total workforce reduction. Many more jobs are being lost due to natural fluctuation. And it is also clear: the job cuts will continue.
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– The underdogs from UBS
The megabank is making a loss due to the CS takeover. However, the numbers show that the competitor was digested faster than expected.