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☆ UBS swings back to profit and smashes earnings expectations for the first quarter
▼ + stars: | 2024-05-07 | by ( Jenni Reid | ) www.cnbc.com time to read: 1 min

UBS logo is seen at the office building in Krakow, Poland on February 22, 2024. UBS on Tuesday reported a swing back to profit after two quarterly losses as it smashed first-quarter expectations, with results bolstered by higher wealth management revenues. Lower expenses and consolidation benefits following the takeover of Credit Suisse in June 2023 also helped the bank post a net profit of $1.8 billion in the first quarter, ahead of a consensus forecast in an LSEG poll of $721.4 million. The Swiss banking giant is continuing to process the mammoth integration of its former rival. The firm said Tuesday that it expects to complete the merger of UBS AG and Credit Suisse AG into a single U.S. intermediate holding company in the second quarter, and the merger of its Swiss entities in the third quarter.

Organizations: UBS, Credit Suisse, UBS AG, Credit Suisse AG Locations: Krakow, Poland, Swiss, U.S

☆ A Wall Street firm wants to collect a $4 million breakup fee from a banker who never started his job. Judges will soon rule if that's legal.
▼ + stars: | 2024-04-18 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Jefferies included a $4 million break-up fee in an offer letter to a banker. The Wall Street bank is demanding payment after Dean Decker stayed with Credit Suisse after signing. AdvertisementA Wall Street bank inserted a $4 million break-up fee into an offer letter and demanded the payment after the employee backed out. "In fact, the only winner was Decker — both Jefferies and Credit Suisse were gamed (pun intended.)" It's worth noting that Credit Suisse agreed to cover Decker's legal costs and any damages, meaning UBS is on the hook following a merger of the two Swiss banks last year.

Persons: Jefferies, Dean Decker, —, Decker, Decker —, UBS didn't Organizations: Credit Suisse, Service, Bloomberg, Jefferies, Suisse, UBS, Banco Santander, Business Locations: California, Spanish

☆ Swiss banking giant UBS to launch share buyback of up to $2 billion
▼ + stars: | 2024-04-02 | by ( Matt Clinch | ) www.cnbc.com time to read: 1 min

UBS logo is seen at the office building in Krakow, Poland on February 22, 2024. UBS on Tuesday announced a new share repurchase program of up to $2 billion, with up to $1 billion of that total expected to take place this year. The new program follows the completion of the 2022 buyback, during which 298.5 million of it shares were purchased. This represented 8.62% of its stock worth $5.2 billion, according to UBS. The bank's 2022 share repurchase program concluded last month.

Organizations: UBS, UBS AG, Credit Suisse AG Locations: Krakow, Poland

☆ Credit Suisse sheds nearly 13% of workforce
▼ + stars: | 2023-09-29 | by ( ) www.reuters.com time to read: +2 min

The logo of Credit Suisse is seen outside its office building in Hong Kong, China, August 8, 2023. REUTERS/Tyrone Siu/File photo Acquire Licensing RightsZURICH, Sept 29 (Reuters) - Credit Suisse has shed nearly 13% of its workforce in the past 12 months, underlining the turmoil at the bank that was taken over by cross-town rival UBS (UBSG.S) in a state-engineered rescue earlier this year. The number of Credit Suisse employees fell to 33,968 at the end of June, from 38,908 at the end of June 2022, the bank said in its financial report published on Friday. The figures relate to Credit Suisse AG, the lender's core banking business. A Credit Suisse spokesperson declined to comment on the breakdown between voluntary departures and job cuts, or how many jobs could be lost in future.

Persons: Tyrone Siu, Sergio Ermotti, Ermotti, John Revill, Emelia Sithole, Mark Potter, Susan Fenton Organizations: Credit Suisse, REUTERS, Rights, UBS, Credit Suisse AG, Asset Management Association Switzerland, Thomson Locations: Hong Kong, China, Switzerland

☆ Morning Bid: Markets brace for EU, US inflation data blitz
▼ + stars: | 2023-08-31 | by ( ) www.reuters.com time to read: +3 min

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 30, 2023. REUTERS/Staff/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Brigid RileyA slew of economic data is set to roll out on Thursday, including preliminary euro zone CPI numbers and U.S. personal consumption data, with markets hankering for further inflation relief as central bank policy meetings march closer into view. The pan-European STOXX 600 index (.STOXX) closed lower and the euro jumped in the aftermath of the data, with markets now bracing for the last day of a gloomy August. Expectations are still hovering around a 50-50 chance of another ECB hike, with the focus on preliminary euro zone CPI data due later in the day. Meanwhile, Chinese stocks were looking glum again in the Asian morning after an official factory survey showed manufacturing activity slowed for a fifth month straight.

Persons: Brigid Riley, Collins, Lululemon, Pernod Richard, Edmund Klamann Organizations: REUTERS, Staff, European Central Bank, Reuters Graphics, Federal Reserve, UBS, Credit Suisse, Credit Suisse AG, PCE, Dollar, Corp, Broadcom Inc, Thomson Locations: Frankfurt, Germany, Spain, France, U.S, Italy, Switzerland, Central

☆ Credit Suisse 1a Immo PK real estate fund to remain unlisted
▼ + stars: | 2023-08-24 | by ( ) www.reuters.com time to read: +1 min

The logo of Credit Suisse bank is seen outside its office building in Hong Kong, China March 20, 2023. REUTERS/Tyrone Siu/File Photo Acquire Licensing RightsZURICH, Aug 24 (Reuters) - The Credit Suisse 1a Immo PK real estate fund will remain unlisted and not floated in an initial public offering planned for the fourth quarter of 2023, the Swiss bank, which is now a subsidiary of UBS (UBSG.S), said on Thursday. "Due to the renewed fall in trading volumes on the market for listed Swiss real estate funds compared with the previous year; (an IPO) would likely have led to significantly higher volatility in the event of a stock exchange listing," Credit Suisse AG said. With UBS taking over Credit Suisse earlier this year and in the process of integrating its former rival, the decision would also give allow the newly formed real estate unit within UBS Asset Management to coordinate and refocus its offering. Reporting by Noele Illien; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

Persons: Tyrone Siu, Noele Illien, Christopher Cushing Organizations: Credit, REUTERS, Rights, UBS, Suisse AG, Credit Suisse, Management, Thomson Locations: Credit Suisse, Hong Kong, China, Swiss

☆ 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

☆ Mozambique "tuna bond" case against Credit Suisse can proceed, UK judge rules
▼ + stars: | 2023-07-03 | by ( Kirstin Ridley | ) www.reuters.com time to read: +3 min

But he warned: "At trial, all alternatives, including to strike out and in whole or in part, remain available." Credit Suisse, UAE-Lebanese Privinvest and others argued that a lack of "adequate" disclosure jeopardised a fair trial. Under English litigation rules, each party has to disclose documents on which they rely for their case, those that might damage their own case and those that support the case of others. A spokesperson for Credit Suisse said the bank noted the judgment and "continues to defend itself". Credit Suisse agreed to pay about $475 million to British and U.S. authorities in 2021 to resolve bribery and fraud charges and has pledged to forgive $200 million of debt owed by Mozambique.

Persons: Robin Knowles, SISE, Privinvest, Kirstin Ridley, Rachel Savage, Sam Tobin, Conor Humphries Organizations: Credit Suisse, Privinvest, International Monetary Fund, Mozambican, UBS, Lawyers, Thomson Locations: London, Mozambican, Mozambique, UAE, Lebanese, Swiss, U.S, United States

☆ Factbox: Credit Suisse arrivals and departures after UBS seals takeover
▼ + stars: | 2023-06-12 | by ( ) www.reuters.com time to read: +3 min

Here are the highlights:OUTLeaving the company:* Credit Suisse General Counsel Markus Diethelm. The Swiss-Italian national returned to Credit Suisse in January 2022 as head of its wealth management division after a stint leading Australian wealth management company AMP. NEWCOMERSA logo is pictured on the Credit Suisse bank in Geneva, Switzerland, March 15, 2023. REUTERS/Denis Balibouse/File PhotoAppointments to the executive board of Credit Suisse AG:* Michael Ebert - becomes Head of Credit Suisse for the investment bank, and head of Americas for the investment bank at UBS. * Andre Helfenstein - continues as CEO Swiss bank, the jewel in the Credit Suisse business whose future UBS is currently considering.

Persons: Markus Diethelm, Romeo Cerutti, Dixit Joshi, Edwin Low, David Miller, Ken Pang, Pang, Francesco De Ferrari, Iqbal Khan, Joanne Hannaford, Mike Dargan, David Wildermuth, Christian Bluhm, Denis Balibouse, Michael Ebert, Simon Grimwood, Isabelle Hennebelle, Claude Honegger, Mike Rongetti, Jake Scrivens, Yves, Alain Sommerhalder, Damian Vogel, Christine Graeff, Andre Helfenstein, Francesca McDonagh, Nita Patel, Goldman Sachs, John Revill, Tomasz Janowski Organizations: UBS, Credit Suisse, Credit, Deutsche Bank, Asia, Global, UBS Global Wealth Management, Italian, AMP, Wealth Management, . Technology, UBS Group, Operations, Technology, Americas, REUTERS, Credit Suisse AG, Credit Suisse Operations, Credit Suisse Chief Technology, Suisse Asset Management, EMEA, European Central Bank, Human, Swiss, Thomson Locations: ZURICH, China, Americas, Asia, Hong Kong, Swiss, Geneva, Switzerland

☆ Credit Suisse staff prepare to sue Swiss regulator over lost AT1 bonuses-FT
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

May 22 (Reuters) - Credit Suisse AG (CSGN.S) staff are preparing to sue the Swiss financial regulator over $400 million of bonuses that were canceled after the troubled lender's rescue by UBS Group AG (UBSG.S), the Financial Times reported on Monday. Quinn Emanuel and Pallas, law firms which are already suing Swiss regulator Finma on behalf of investors who owned AT1 bonds, have received multiple requests from senior managers at Credit Suisse to take legal action on their behalf, the report said. Credit Suisse declined to comment, while Law firms Quinn Emanuel, Pallas and Finma did not immediately respond to Reuters' request for comment. Following this, Switzerland's Federal Council instructed Credit Suisse to cancel or reduce all outstanding bonus payments for the top three levels of management and examine whether those already paid can be recovered. read moreUnder Swiss banking law, the Federal Council can impose bonus-related measures on a systemically important bank if it received state aid from federal funds.

☆ UBS flags $17 bln hit from Credit Suisse takeover
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

May 16 (Reuters) - UBS Group AG (UBSG.S) expects a financial hit of about $17 billion from the takeover of Credit Suisse Group AG (CSGN.S), the bank said in a presentation early on Wednesday as it prepares to complete the rescue of its struggling Swiss rival. The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds. Switzerland's government is providing a guarantee of up to 9 billion francs for further potential losses on a clearly defined part of Credit Suisse portfolio. Credit Suisse faces certain restrictions in its ability to do business until its acquisition by UBS is completed, according to a regulatory filing on Tuesday. Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies – UBS AG and Credit Suisse AG, UBS said last week.

☆ UBS flags $17 billion hit from Credit Suisse takeover
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +3 min

Meanwhile, UBS has implemented a number of restrictions on Credit Suisse while the takeover is underway. Credit Suisse also cannot undertake capital expenditure of more than 10 million francs or enter into certain contracts worth more than 3 million francs per year. The filing shows Credit Suisse cannot order any "material amendments" to its employee terms and conditions, including remuneration and pension entitlements, till deal closure. The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds. Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies – UBS AG and Credit Suisse AG, UBS said last week.

Besides Koerner, who spent over a decade at UBS before returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling together his new team. Commenting on Koerner's future role, UBS said Koerner would be responsible for Credit Suisse's operational continuity and client focus, while supporting its integration. Credit Suisse executive board members will report to both their relevant UBS executive board member and Koerner. Reuters reported last week that options under consideration for that business include a sale or an initial public offering of Credit Suisse's domestic unit. “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry," Ermotti said in the statement.

☆ UBS says Credit Suisse CEO Ulrich Koerner will join its board
▼ + stars: | 2023-05-09 | by ( ) edition.cnn.com time to read: +4 min

Besides Körner, who spent over a decade at UBS before returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling together his new team. Some media had speculated that a number of Credit Suisse bankers would take up senior roles at the new group. Credit Suisse executive board members will report to both their relevant UBS executive board member and Körner. “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry,” Ermotti said in the statement Tuesday. Zuercher Kantonalbank said this meant there would be initially no big changes for the current Credit Suisse management.

☆ Switzerland faced a full-scale bank run if Credit Suisse went bankrupt, Swiss regulator argues
▼ + stars: | 2023-04-05 | by ( Ruxandra Iordache | ) www.cnbc.com time to read: +7 min

It would have erased the holding company Credit Suisse Group, along with the parent bank Credit Suisse AG and its branches, while retaining the Credit Suisse (Schewiz) AG entity because of its "systemic importance." "The parent bank Credit Suisse AG would have gone under – a Swiss bank with total assets of over CHF 350 billion and ongoing business also running into many billions," Angehrn warned. Many other Swiss banks would probably have faced a run on deposits, as Credit Suisse itself did in the fourth quarter of 2022." Angehrn said the regulator has been in recent dialogue with the U.S., but did not experience international pressure in its supervision of Credit Suisse. The authorities would have risked not stopping a looming financial crisis by using the tool of resolution, but rather triggering such a financial crisis."

The global banking sector has been rocked since the sudden collapse this month of two U.S. regional banks sparked fears of contagion to other lenders. Separate sources told Reuters that UBS has promised retention packages to Credit Suisse wealth management staff in Asia to stem a talent exodus. Credit Suisse and UBS declined to comment, while the Justice Department did not immediately respond to Reuters' emailed requests for comment. The takeover of Credit Suisse has also ignited broader concerns about investors' exposure to a fragile banking sector. Standard Chartered (STAN.L) Chief Executive Bill Winters said on Friday the wipeout had "profound" implications for global bank regulations.

The fresh price falls in Europe came as investors were looking to see how far U.S. authorities would go to shore up the banking sector, particularly fragile regional lenders. REUTERS/Dado Ruvic/Illustration/File Photo 1 2CDS surge on banking sector turmoilUBS CHALLENGESThe global banking sector has been shaking since the sudden collapse this month of SVB and Signature Bank. But the worries spread quickly, and on Sunday UBS (UBSG.S) was rushed into taking over Swiss rival Credit Suisse after it lost the confidence of investors. Separate sources told Reuters that UBS has promised retention packages to Credit Suisse wealth management staff in Asia to stem a talent exodus. Standard Chartered (STAN.L) Chief Executive Bill Winters said on Friday the wipeout of Credit Suisse bondholders had "profound" implications for global bank regulations.

☆ StanChart CEO says AT1 bond wipeout has profound impact
▼ + stars: | 2023-03-24 | by ( Selena Li | ) www.reuters.com time to read: +2 min

HONG KONG, March 24 (Reuters) - Standard Chartered (STAN.L) Chief Executive Bill Winters said on Friday Credit Suisse AG's (CSGN.S) $17 billion Additional Tier 1 bonds wipeout had "profound" implications for global bank regulations. Winters told a financial forum in Hong Kong the U.S. Federal Reserve move to guarantee non-insured deposits was a "moral hazard". "I think it had very profound implications for the regulation of banks, and for the way that banks manage themselves," Winters said. The bank had 147% LCR before the bank failures and this was "substantially higher now", Winters said, without disclosing the current level. Reporting by Selena Li in Hong Kong; additional reporting by Scott Murdoch in Sydney; Editing by Christian Schmollinger and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse, UBS among banks facing US's Russia-sanctions probe -Bloomberg News
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +1 min

March 23 (Reuters) - Credit Suisse AG (CSGN.S) and UBS group AG (UBSG.S) are under scrutiny in a U.S. Department of Justice (DOJ) probe into whether financial professionals helped Russian oligarchs evade sanctions, Bloomberg News reported on Thursday. The DOJ also sent subpoenas to employees of some major U.S. banks, the Bloomberg report said, adding the Swiss banks were included in a wave of subpoenas sent before Credit Suisse's takeover by UBS. The DOJ inquiries are to identify which bank employees dealt with sanctioned clients and how those clients were vetted over past years, Bloomberg reported. Credit Suisse declined to comment while UBS and the Justice Department did not immediately respond to Reuters' emailed requests for comment. Reporting by Akanksha Khushi in Bengaluru; editing by Jonathan Oatis, Lincoln Feast and Richard ChangOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: N. American fixed income group won't take legal action over Credit Suisse AT1 fiasco-source
▼ + stars: | 2023-03-23 | by ( Divya Rajagopal | ) www.reuters.com time to read: +1 min

TORONTO, March 23 (Reuters) - The Credit Roundtable, a lobby group of some of the biggest fixed income asset managers from the United States and Canada, has decided not to take legal action against Credit Suisse AG (CSGN.S) a person familiar with the matter told Reuters on Thursday. Earlier this week, the Swiss regulator ordered 16 billion Swiss francs ($17.5 billion) of Additional Tier-1 (AT1) debt to be wiped out under its rescue takeover by UBS (UBSG.S). The Credit Roundtable was not available for an immediate comment. Launched in 2007 for bondholders protection, Credit Roundtable consists of 43 members including PIMCO, Vanguard, MetLife (MET.N), Canadian pension fund Omers, Sun Life Financial Inc (SLF.TO) among others. The bond holders of Credit Suisse in Europe and UK have been seeking legal advice over the Swiss banking regulator's decision to write off AT1 bonds under the rescue take over by UBS.

The index of top European banks (.SX7P) was down 1% in early trading, with German banking giants Deutsche Bank (DBKGn.DE) and Commerzbank (CBKG.DE) both falling 0.8%. The rescue of Credit Suisse, which followed the collapses of California-based Silicon Valley Bank (SVB) (SIVB.O) and New York-based Signature Bank (SBNY.O) ignited broader concerns about investors' exposure to a fragile banking sector. The decision to prioritise shareholders over Additional Tier 1 (AT1) bondholders rattled the $275 billion AT1 bond market and some Credit Suisse AT1 bondholders are seeking legal advice. "The AT1 instruments issued by Credit Suisse contractually provide that they will be completely written down in a 'viability event', in particular if extraordinary government support is granted," FINMA said. However, some watchers think the banking system is more vulnerable to rumour and rapid moves in an era of widespread social media use, posing a challenge for regulators trying to tamp down instability.

☆ Exclusive: N. American fixed income group will not take legal action over Credit Suisse AT1 wipeout -source
▼ + stars: | 2023-03-23 | by ( Divya Rajagopal | ) www.reuters.com time to read: +1 min

TORONTO, March 23 (Reuters) - The Credit Roundtable, a lobby group of some of the biggest fixed income asset managers from the United States and Canada, has decided not to take legal action against Credit Suisse AG (CSGN.S), a person familiar with the matter told Reuters on Thursday. The Credit Roundtable was unavailable for comment. Launched in 2007 for bondholders' protection, Credit Roundtable consists of 43 members including PIMCO, Vanguard, MetLife (MET.N), Canadian pension fund Omers, and Sun Life Financial Inc (SLF.TO). The source said individual members are free to pursue legal action independently. The bond holders of Credit Suisse in Europe and UK have been seeking legal advice over the Swiss banking regulator's decision to write off AT1 bonds under the rescue take over by UBS.

Executives will run through the numbers and formulate scenarios that might reshape Credit Suisse's future, the sources added. Credit Suisse declined to comment. Among possible scenarios, analysts, bankers and investors speculate that Credit Suisse could sell or wind down some of its existing businesses with a break-up potentially on the cards. The sell-off in Credit Suisse's shares began in 2021, triggered by losses associated with the collapse of investment fund Archegos and Greensill Capital. In December, Credit Suisse had tapped investors for 4 billion Swiss francs.

LONDON/ZURICH, March 17 (Reuters) - Credit Suisse AG (CSGN.S) will be holding meetings over the weekend to assess scenarios for the bank as it struggles to regain confidence from the market, people with knowledge of the matter told Reuters on Friday. The meetings will include teams of the chief financial officer, the people said. Credit Suisse didn't immediately respond to requests for comment. On Thursday, the bank tapped the option of a $54 billion loan from the Swiss National Bank. Reporting by Stefania Spezzati and Oliver Hirt; Editing by Tom SimsOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse shares tumble more than 20%, leading a plunge in European bank stocks
▼ + stars: | 2023-03-15 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Credit Suisse shares fell 21% Wednesday after its Saudi backers ruled out more investment. Shares in Credit Suisse slid 21.91% to $1.96 in pre-market trading in US-listed shares. "If we go above 10%, all new rules kick in whether it be by our regulator or the Swiss regulator or the European regulator," he said. In a further sign of turmoil, the cost of insuring bonds of Credit Suisse against a default in the near term has surged. The five-year credit default swaps on Credit Suisse debt extended to 533 basis points from 549 basis points at last close, per Reuters.

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