UBS, which bought Credit Suisse, posted losses for the first time since 2017
Switzerland’s largest bank, UBS, posted its first quarterly loss in almost six years as it revealed Credit Suisse integration costs.
UBS said it had a net loss of $785 million in the third quarter after including $2 billion in expenses related to the Credit Suisse integration. Analysts had expected a loss of $444 million.
The deal is expected to be a major win for UBS in the long term and strengthen its position as a global asset management powerhouse. But the banking sector’s most complex takeover since the 2008 financial crisis also carries risks.
THE COST OF INTEGRATION IS HIGH
According to the bank’s statement today, the acquisition of Credit Suisse generated a net loss of $785 million. The fact that the bank took on $2.2 billion in expenses under the deal contributed to the losses exceeding expectations.
“We are optimistic about our future as we build a stronger, more secure version of UBS,” said Sergio Ermotti, the bank’s chief executive.
Source: Sozcu
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