The bank achieved the highest quarterly profit ever posted by a financial institution.
UBS released this Thursday, August 31 your financial results for the second quarter, revealing a net profit of 28.875 million dollars. This announcement marks the presentation of its first results after completing the purchase of its direct competitor, Credit Suisse.
The institution explained that its report includes 28.925 million dollars as negative goodwill, together with 830 million in related expenses to the integration and costs associated with the acquisition of Credit Suisse.
Additionally, net bad debt expenses reached 740 million dollars. The expense to income ratio is set at a 88.9%. However, the net profit attributable to shareholders consolidated at 28,875 million dollarswith diluted earnings per share of $8.99. The return on capital CET1 stood at the 185.0%.
UBS: The words of the CEO
In the words of the CEO of UBS, Sergio Ermotti“two and a half months after completing the acquisition of Credit Suissewe are focused on generating value for all our interested parties, as a result of one of the largest and most complex bank mergers in history“. Ermotti stressed that “we are restoring the trust of our customers, rationalizing costs and adopting measures to generate economies of scale that guide our resources towards future growth. This synergy reinforces our position as an entity, something that our national market, Switzerland, must feel like an achievement. We face this task with humility and the responsibility that it implies“.
In line with this strategy, the national banking arm of Credit Suisse (Credit Suisse AG) will be fully absorbed by UBS, the group reported Thursday. This merger of legal entities is projected to conclude in 2024. According to Ermotti, “the decision to unify Credit Suisse AG stems from a thorough evaluation of all available alternatives. Our analysis clearly indicates that a full integration is the best path for UBSour stakeholders and the Swiss economy”.
ermotti also ensured that “clients will continue to experience the excellent level of service they expect, benefiting from enhanced offerings, specialized competencies and global reach. Our strengthened capital base allows us to maintain our combined lending exposures unchanged while maintaining our asset management discipline.” risks. Given the significant role both companies play in our communities, we will continue to honor agreed sponsorships for civic, sporting and cultural activities in Switzerland until at least the end of 2025.“.
On June 12, UBS completed the acquisition of Credit Suisse, after the difficult situation faced by the latter in the midst of the financial crisis on the other side of the Atlantic. As a consequence of this process, UBS delayed the presentation of its second quarter results, which was originally expected for July 25. In the previous quarter, UBS experienced an unexpected 52% year-over-year decline in its net profit, due to litigation concerning US mortgage-backed securities.
Source: Ambito
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