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☆ UBS shares jump to 2008 highs after profit beat, job cuts announcement
▼ + stars: | 2023-08-31 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

UBS posted a second-quarter profit of $28.88 billion in its first quarterly earnings since Switzerland's largest bank completed its takeover of stricken rival Credit Suisse. UBS said the result primarily reflected $28.93 billion in negative goodwill on the Credit Suisse acquisition. UBS paid a discounted 3 billion Swiss francs ($3.4 billion) to acquire Credit Suisse in March. "Credit Suisse has excellent people, clients, and product capabilities, but the business model was not sustainable any longer and needs to be restructured." UBS delayed reporting its second-quarter results — initially scheduled for July 25 — until after completing the Credit Suisse takeover on June 12.

Persons: Eduardo Munoz Alvarez, Ermotti, CNBC's, CNBC's Joumanna, — Organizations: UBS, View Press, Getty, Credit Suisse, Analysts, Suisse, Suisse's, Credit, The Credit Suisse, Swiss Locations: Manhattan, New York City, Zurich, Swiss, Switzerland

☆ No more 'bodies in the cupboard' for UBS after Credit Suisse acquisition: Lakefield Partners
▼ + stars: | 2023-08-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNo more 'bodies in the cupboard' for UBS after Credit Suisse acquisition: Lakefield PartnersBruno Verstraete, partner at Lakefield Partners, discusses the positive market reaction to UBS' massive second-quarter profit and announcement that it will fully absorb Credit Suisse's Swiss banking division.

Persons: Bruno Verstraete Organizations: UBS, Credit Suisse, Lakefield, Lakefield Partners, Swiss

☆ A 'historic' result but still a 'construction site': Analysts react to blowout UBS earnings
▼ + stars: | 2023-08-31 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Swiss authorities brokered the controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March. Fabrice Coffrini | AFP | Getty ImagesUBS shares rallied to 15-year highs on the back of what analysts branded a "historic" earnings report, though Deutsche Bank said the Swiss banking giant may remain a "construction site" for some time. UBS also announced that it will fully integrate Credit Suisse's Swiss banking unit, a key profit center, in 2024. Notably, UBS highlighted that the massive net asset and deposit outflows seen by Credit Suisse over the last year have finally begun to reverse, and turned positive in June. "It's difficult to combine a blowout result like that and then to announce layoffs at the same time.

Persons: Fabrice Coffrini, Benjamin Goy, Sharath Kumar, Bruno Verstraete, Verstraete Organizations: Credit Suisse, UBS, AFP, Getty, Deutsche Bank, Swiss, Credit, midafternoon, Lakefield Partners, CNBC Locations: Swiss, Zurich, 2Q23, Switzerland

☆ UBS investors warm to Credit Suisse deal
▼ + stars: | 2023-07-17 | by ( Oliver Hirt | ) www.reuters.com time to read: +6 min

Several fund managers who hold UBS stock have told Reuters they think UBS has bought Credit Suisse at a good price, with some even describing it as a steal. "UBS got Credit Suisse for practically nothing, so accordingly the deal will work out for them," another investor told Reuters. Still, UBS inherits a troubled legacy at Credit Suisse, said Thomae, pointing to legal risks which UBS has said could cost billions of dollars. Rivals have poached entire teams from Credit Suisse, he said, and some clients are likely to follow them. Deka's Thomae said UBS and Credit Suisse together would have a market share in Switzerland that is just within acceptable limits.

Persons: Colm Kelleher, Guy de Blonay, Andreas Thomae, Thomae, de Blonay, De Blonay, JP Morgan, Kian Abouhossein, Julius Baer, Deka's Thomae, Oliver Hirt, John Revill, David Holmes Organizations: Credit Suisse, UBS, Switzerland's, Reuters, Jupiter Asset Management, CS, Swiss, UBS AG, Credit Suisse AG, STATE, Deka Investment, Fund, Rivals, Suisse, JP, Suisse's, Investors, Credit, Thomson Locations: ZURICH, Suisse's Swiss, Switzerland

☆ UBS overhauls leadership at wealth management division
▼ + stars: | 2023-07-06 | by ( ) www.reuters.com time to read: +2 min

ZURICH, July 6 (Reuters) - UBS's (UBSG.S) flagship global wealth management business on Thursday announced a raft of management changes triggered by the Swiss bank's takeover of Credit Suisse. Former Credit Suisse executive Michael Marr will become the head of Global Wealth Management Australia at UBS, according to a person familiar with the matter. The move marks the re-entry of UBS's wealth management business into Australia after several years. The decisions had been based on "fairness and meritocracy," said Iqbal Khan, the president of UBS Global Wealth Management, in a memo seen by Reuters. Thursday's announcement follows a raft of management changes UBS announced last month when it formally completed the takeover of its former rival.

Persons: Michael Marr, Puneet Matta, Lisa Golia, Morgan Stanley, Iqbal Khan, Khan, Sergio Ermotti, Ruben Mangold, Oliver Hirt, John Revill, David Evans Organizations: Credit Suisse, Former Credit Suisse, Global Wealth Management, UBS, UBS Global Wealth Management, Reuters, Credit Suisse's, Shipping Finance, Thomson Locations: ZURICH, Swiss, Australia, India, Dubai, London, Singapore, United States, Credit Suisse's Swiss

☆ 'Prospects for UBS are better than ever,' CEO says
▼ + stars: | 2023-06-17 | by ( ) www.reuters.com time to read: +1 min

ZURICH, June 17 (Reuters) - UBS's (UBSG.S) Chief Executive sought to reassure Switzerland on Saturday over its new banking giant, created by the Swiss bank's historic takeover of former rival Credit Suisse . "The prospects for UBS are better than ever," Sergio Ermotti wrote in an opinion piece published in the Swiss paper Tages-Anzeiger. Ermotti, who returned to the bank as Chief Executive in a surprise move shortly after the government orchestrated rescue of Credit Suisse was announced, addressed public concern over the size of the combined bank. He said "there is no doubt that UBS is a large bank," but that the company's business model also contributes to creating wealth for Switzerland. "The question of what will happen to Credit Suisse's Swiss business also needs to be well thought through," he said.

Persons: Sergio Ermotti, Ermotti, Noele Illien, Louise Heavens Organizations: Swiss, Credit Suisse, UBS, Suisse's, Thomson Locations: ZURICH, Swiss, Switzerland

The loss protection agreement (LPA) will become effective with the completion of Credit Suisse takeover, expected as early as June 12, UBS said in a separate statement. The guarantees will kick in if UBS incurs losses from the sale of Credit Suisse assets beyond 5 billion francs that the lender is due to cover itself. The money was made available by the government to ease the emergency takeover of Credit Suisse, whose collapse risked triggering a global financial crisis. "To make the takeover possible, the government granted UBS a guarantee for any losses incurred in the liquidation of Credit Suisse assets," the government said in a statement. The agreement will remain in place until the final realisation of the Credit Suisse assets.

Persons: Denis Balibouse, Noele Illien, John Revill, Tomasz Janowski Organizations: Swiss, UBS, REUTERS, Suisse, Credit Suisse, country's Social, Credit Suisse's, Thomson Locations: Zurich, Switzerland, ZURICH, Swiss

☆ UBS chief draws up Credit Suisse leadership shortlist, FT reports
▼ + stars: | 2023-05-06 | by ( ) www.reuters.com time to read: +1 min

May 6 (Reuters) - UBS Group AG's (UBSG.S) Chief Executive Sergio Ermotti has shortlisted the Credit Suisse Group AG's (CSGN.S) executives most likely to become part of the management team, the Financial times reported on Saturday, citing people familiar with the plans. Dixit Joshi, chief financial officer, Francesca McDonagh, chief operating officer, and André Helfenstein, head of the Swiss business, are most likely to remain a part of the Swiss bank's executive team, the report said. Credit Suisse declined to comment on the report. UBS did not immediately respond to Reuters' request for a comment. ($1 = 0.8910 Swiss francs)Reporting by Rahat Sandhu in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ UBS chief draws up Credit Suisse leadership shortlist, FT says
▼ + stars: | 2023-05-06 | by ( ) www.reuters.com time to read: +1 min

The future of Credit Suisse's business in Switzerland is being closely watched as one of UBS's key strategic decisions. Credit Suisse's Swiss bank is one of the lender's four operating units and is seen as the jewel in the crown. In January, Credit Suisse had moved the business from its broader investment banking division into the Swiss unit, according to Credit Suisse's 2022 annual report. On a possible sale, Ermotti has said all options for the Swiss business are on the table. On Sunday, NZZ am Sonntag newspaper reported that UBS was working towards spinning off Credit Suisse's domestic unit.

☆ UBS aims to close Credit Suisse deal by end of May, early June
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +1 min

ZURICH, May 3 (Reuters) - UBS (UBSG.S) Chief Executive Sergio Ermotti said on Wednesday that the Swiss bank was working on closing its merger with Credit Suisse (CSGN.S) by the end of May or early June. Speaking at the Finanz '23 conference in Zurich, Ermotti also repeated his bank's line that all options were still on the table concerning Credit Suisse's Swiss business. In March UBS agreed to takeover its struggling cross-town rival for 3 billion Swiss francs ($3.37 billion) and said it would assume up to 5 billion ($5.61 billion) in losses as part of a deal hastily arranged by Swiss authorities. On Sunday, NZZ am Sonntag newspaper reported that the country's largest bank was working towards spinning off Credit Suisse's domestic unit, with its current head, Andre Helfenstein, expected to run it. The Swiss newspaper cited a source as saying that UBS had come around to the idea of a spin-off, which it initially ruled out, because of growing public and political pressure.

☆ Rivals can feast on Credit Suisse client spoils
▼ + stars: | 2023-04-17 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

Credit Suisse saw 110 billion Swiss francs flying out the door in the final quarter of 2022. These outflows were chiefly cash from wealthy clients and some deposits at Credit Suisse's Swiss bank unit. Those holding accounts at both Credit Suisse and UBS may dislike too much wealth concentration. And Credit Suisse is hardly incentivised to transfer securities swiftly. The minister said this was needed because Credit Suisse customers had again withdrawn money.

☆ UBS chairman wants to keep Credit Suisse's Swiss unit
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: 1 min

ZURICH, March 19 (Reuters) - UBS (UBSG.S) Chairman Colm Kelleher said the bank wants to keep Credit Suisse's Swiss unit, speaking at a news conference announcing the merger between Switzerland's two biggest banks on Sunday. "It is a fine asset that we are very determined to keep and hopefully service their customers and clients as efficiently as Credit Suisse has done," Kelleher said. The Chairman of Switzerland's biggest bank said it "will be running down the investment banking part of Credit Suisse, because UBS itself has an investment bank-like model." "We need to do this in a rational way [and] thoughtfully, when we've sat down and analysed what we need to do." Reporting by Noele Illien Editing by Paul CarrelOur Standards: The Thomson Reuters Trust Principles.

March 19 (Reuters) - Talks over rescuing Credit Suisse (CSGN.S) rolled into Sunday as UBS AG (UBSG.S) sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival, a person with knowledge of the talks said. The guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters. Credit Suisse, UBS and the Swiss government declined to comment. U.S. President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilise its shaky balance sheet. There were multiple reports of interest for Credit Suisse from other rivals.

☆ UBS's Credit Suisse deal was the best solution says Swiss gov't
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +2 min

Keller-Sutter, who said she held a Credit Suisse bank account, said the worst case had been avoided. This is a commercial solution because UBS is taking over Credit Suisse," she told a press conference in Bern. "The bankruptcy of Credit Suisse would have had a huge collateral damage - on the Swiss financial market also internationally," she said. He said it was far too early to discuss job cuts at Credit Suisse, but he was very positive about Credit Suisse's Swiss business. His upbeat tone contrasted with Credit Suisse Chairman Axel Lehmann, who was emotional when he spoke about the demise of 167-year-old Credit Suisse as an independent bank.

☆ Fail or sale? What could be next for stricken Credit Suisse
▼ + stars: | 2023-03-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

In this article CSG.N-CHSBNY Follow your favorite stocks CREATE FREE ACCOUNTPeople walk by the New York headquarters of Credit Suisse on March 15, 2023 in New York City. Barry Norris, CEO of Argonaut Capital, which has a short position in Credit Suisse, stressed the importance of a smooth outcome. watch nowEuropean banking shares have suffered steep declines throughout the latest Credit Suisse saga, highlighting market concerns about the contagion effect given the sheer scale of the 167-year-old institution. At the moment, the forecaster sees the problems at Credit Suisse and SVB as "a collection of different idiosyncratic issues." "We know that for most banks, including Credit Suisse, that exposure to higher yields has largely been hedged.

☆ UBS reportedly seeks $6 billion in government guarantees for Credit Suisse takeover
▼ + stars: | 2023-03-18 | by ( ) www.cnbc.com time to read: +2 min

The $6 billion in government guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters. One of the sources cautioned that the talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine. Credit Suisse, UBS and the Swiss government declined to comment. U.S. President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilize its shaky balance sheet. UBS was under pressure from the Swiss authorities to carry out a takeover of its local rival to get the crisis under control, two people with knowledge of the matter said.

☆ U.S. authorities weighing in on possible Credit Suisse-UBS deal- Bloomberg News
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - U.S. authorities are working with Swiss counterparts to broker a deal for UBS AG (UBSG.S) to buy all or part of Credit Suisse Group AG (CSGN.S), Bloomberg News reported on Saturday citing people familiar with the matter. U.S. officials might seek to weigh in on matters which can impact the finals terms of the deal between the banks, according to the report. The plan could see the Swiss government offer a guarantee against the risks involved, while Credit Suisse's Swiss business could be spun off. The Biden administration has moved to backstop consumer deposits while the Swiss central bank loaned billions to Credit Suisse to stabilize its shaky balance sheet. Reporting by Akanksha Khushi in Bengaluru; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ UBS mulls takeover of Credit Suisse with possible Swiss government guarantees
▼ + stars: | 2023-03-18 | by ( John O'Donnell | ) www.reuters.com time to read: +3 min

The people said that UBS was coming under pressure from the Swiss authorities to carry out a takeover. UBS, Credit Suisse, and Switzerland's financial regulator FINMA declined to comment when approached by Reuters. Regulators have urged Credit Suisse Group to pursue a deal with Swiss rival UBS as the troubled bank began a make-or-break weekend after some rivals grew cautious in their dealings with it. The turmoil at Credit Suisse has put another dent in the Swiss reputation for financial stability on which UBS depends. Any tie-up would be one of the biggest since the global financial crisis.

☆ UBS, regulators race to seal Credit Suisse deal as soon as Saturday, Financial Times reports
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - The Swiss National Bank and Swiss regulator FINMA have told their international counterparts they regard a deal with UBS Group (UBSG.S) as the only way to prevent a collapse in confidence in Credit Suisse Group (CSGN.S), the Financial Times reported on Saturday. UBS, Credit Suisse and key regulators are rushing to finalise a deal on the merger of the two Swiss banks as soon as Saturday evening, the FT reported, citing people familiar with the matter. UBS and Credit Suisse did not immediately respond to a Reuters request for comment. Reuters earlier reported that UBS was coming under pressure from the Swiss authorities to carry out a takeover of its local rival to get the market turmoil surrounding Credit Suisse under control. The plan could see the Swiss government offer a guarantee against the risks involved, while Credit Suisse's Swiss business could be spun off.

Credit Suisse saw more than $200 million net outflows from its U.S. and European managed funds after March 13, Morningstar Direct said on Friday. DBRS Morningstar on Thursday became the first global rating agency to cut the bank's credit score, with a downgrade to "BBB", which still qualifies Credit Suisse as investment grade. Credit Suisse shares are down about 26% this week and poised for their biggest week drop since October 2008 and the global financial crisis. U.S. shareholders of Credit Suisse sued the bank on Thursday, claiming it defrauded them by concealing problems with its finances. Credit Suisse declined to comment on the lawsuit.

☆ Credit Suisse shares fall again, sentiment remains fragile
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +3 min

"While markets are relieved that the Swiss central bank stepped in, sentiment is bound to remain very fragile, particularly as investors will likely worry about the eventual economic impact of aggressive monetary policy tightening by the European Central Bank (ECB)," she added. DBRS Morningstar on Thursday became the first global rating agency to cut the bank's credit score, with a downgrade to "BBB", which still qualifies Credit Suisse as investment grade. Credit Suisse shares are down about 22% this week and poised for their biggest week drop since March 2020 when the COVID-19 crisis wreaked turmoil across world markets. U.S. shareholders of Credit Suisse sued the bank on Thursday, claiming it defrauded them by concealing problems with its finances. Credit Suisse declined to comment on the lawsuit.

☆ Credit Suisse sees central bank cash as buying time for overhaul- executive tells SRF
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

ZURICH, March 17 (Reuters) - Credit Suisse (CSGN.S) sees its access to 50 billion Swiss francs ($53.98 billion) of central bank funding as "precautionary liquidity" to allow the embattled lender to continue its revamp, the head of its Swiss business said. Following a crisis of confidence that wiped 25% off the value of Credit Suisse shares on Wednesday, the bank sought an emergency liquidity line from the Swiss National Bank in the first such move for a global lender since the financial crisis of 2008. "We see it as precautionary liquidity so that we can carry out the transformation of Credit Suisse and continue to work well in this turbulent situation," Andre Helfenstein, CEO of Credit Suisse's Swiss bank, told broadcaster SRF in an interview published late Thursday. "Of course 50 billion francs is a big number. Helfenstein said Credit Suisse was working hard to stem customers outflows, although this could take time.

☆ Credit Suisse clients are returning, CEO of bank's Swiss business says
▼ + stars: | 2022-12-21 | by ( ) www.reuters.com time to read: +1 min

ZURICH, Dec 21 (Reuters) - Credit Suisse's client withdrawals have stabilised and reversed in some cases, Andre Helfenstein, the head of Credit Suisse's Swiss business said in an interview with local newspaper NZZ. Last month, Switzerland's second-largest bank said it expected to make a pre-tax loss of up to 1.5 billion Swiss francs ($1.62 billion) during Q4 and revealed that wealthy clients had made hefty withdrawals. Credit Suisse is battling to recover from a string of scandals by focusing more on its flagship wealth management franchise and pruning back investment banking. Helfenstein was asked in the NZZ interview if the bank had had to offer clients special conditions to keep them. Credit Suisse chairman Axel Lehmann has said that client fund outflows at Credit Suisse had partially reversed and very few clients had left entirely.

☆ Credit Suisse bonds slide, CDS rise
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: 1 min

Nov 28 (Reuters) - Credit Suisse bonds fell and the cost of insuring exposure to its debt rose on Monday following reports of fresh troubles at the Swiss lender. Five-year credit default swaps widened 4 basis points (bps) from Friday's close to 349 bps, the highest since at least early October, according to data from S&P Global Market Intelligence. Bonds also came under pressure, with the additional tier 1 dollar-denominated issues down as much as 1.7 cent, hitting the lowest level since mid-October. The head of Credit Suisse's Swiss unit said on Sunday that "some customers have withdrawn some of their money, but very few have actually closed their accounts." Reporting by Chiara Elisei, editing by Karin StroheckerOur Standards: The Thomson Reuters Trust Principles.

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