UBS has reported a $255 million pre-tax loss, shed some 4,000 jobs globally, lower prices sooner than anticipated, and reaped billions in asset inflows within the third quarter
ByThe Related Press
November 7, 2023, 6:20 AM
GENEVA — UBS reported Tuesday a $255 million pre-tax loss as the enormous Swiss financial institution shed some 4,000 jobs globally, lower prices sooner than anticipated, and reaped billions in asset inflows within the third quarter whereas shifting ahead with its government-orchestrated merger with rival Credit score Suisse.
The Zurich-based financial institution mentioned underlying revenue earlier than taxes got here in at $884 million within the first full quarter for the reason that merger was accomplished in June. Authorities authorities in Bern shepherded by means of the take care of financial institution chiefs to stave off a collapse of Credit score Suisse and avert a monetary disaster.
UBS, which is striving to rid of overlap between the 2 former rival banks, mentioned underlying working bills of $1.2 billion in non-core, legacy operation stemmed from efforts to cut back headcount and outsourcing prices.
The financial institution mentioned it was one quarter forward of schedule in reaping financial savings from the restructuring operations, and the headcount was down greater than 4,000 in the course of the third quarter.
UBS tallied $33 billion in web new deposits in its wealth administration and private and company banking segments, two-thirds of that from Credit score Suisse purchasers.
“We’re executing on the combination of Credit score Suisse at tempo and have delivered underlying profitability for the group within the first full quarter for the reason that acquisition,” UBS chief govt Sergio Ermotti mentioned in a press release.
Shares of the financial institution rose greater than 3% in Tuesday morning buying and selling on the Six Swiss Alternate in Zurich, and have gained greater than 32% up to now this 12 months.
Deutsche Financial institution analysts Benjamin Goy and Sharath Kumar, who affirmed their “purchase” ranking on UBS shares, mentioned the pre-tax figures topped the consensus analysts’ expectations and mentioned: “UBS reported one other good quarter in our view.”
UBS has mentioned the 2 banks will function individually till a deliberate authorized merger subsequent 12 months, and the Credit score Suisse model — with its storied but just lately troubled legacy in Swiss finance — would stay “till we full the migration of purchasers to our system, which we anticipate in 2025.”