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UBS CEO insists bank not too big after Credit Suisse takeover
  + stars: | 2023-09-05 | by ( ) www.reuters.com   time to read: +2 min
The logos of Swiss bank Credit Suisse and UBS are seen in Geneva, Switzerland, June 7, 2023. UBS completed its emergency takeover of Credit Suisse in June, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet. The executive, who returned to UBS in April to steer the Credit Suisse takeover, was also critical of Credit Suisse. "Credit Suisse went under because it had a business model for years which was simply not right. "I don't think it will be a problem to integrate Credit Suisse," he said.
Persons: Denis Balibouse, Sergio Ermotti, Ermotti, Oliver Hirt, John Revill, Emelia Sithole Organizations: Credit Suisse, UBS, REUTERS, UBS Group, Suisse, Thomson Locations: Geneva, Switzerland, ZUG, Zug, Swiss
Biodiversity credits could be key to funding the conservation of the Earth’s ecosystems, but setting up a functioning market to buy and sell these payment tokens won’t be easy. The World Economic Forum is working on bringing together stakeholders, but admits that a scaled-up market is still some way in the future. It follows the lead of so-called voluntary carbon credits that allow firms to buy credits to offset their own emissions. Those global carbon credit markets are now worth some $2 billion, up from $200 million five years ago, according to environmental-finance data provider Ecosystem Marketplace. “I feel a bit of ‘carbon envy’ when I look at the carbon markets,” Cornell’s Tobin said, noting that biodiversity markets lack a universal metric that can apply to every project, unlike carbon markets where each credit represents one metric ton of carbon dioxide.
Persons: John Tobin, de la Puente, Tobin, don’t, Cornell’s Tobin, ” Tobin, JULIAN HABER, Zoe Balmforth, , ’ ”, Balmforth, , ” Nestlé, Nestlé, biocredits, Markus Mueller, ” Mueller, Joshua Kirby, joshua.kirby@wsj.com Organizations: Economic, Paulson Institute, Cornell University, Credit Suisse, Companies, UN, REUTERS, Sustainable Business, Unilever, Deutsche Locations: Australia, Switzerland, biocredits
How big banks won the banking crisis
  + stars: | 2023-09-05 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +7 min
Before the Bell: Now that the dust is hopefully settling on this year’s regional banking crisis, are there clear winners and losers in the banking sector? David Kotok: There’s no question the [global systemically important banks, G-SIB] won and the middle-sized banks — let’s call that banks with between $50 billion and $250 billion in assets — were the losers. So if you stand back from the immediate 2023 banking crisis, and you say, how many banks were there 20 years ago in the United States, how many banks are there today? The UK economy is bigger than we thoughtThe UK economy recovered from the Covid-19 pandemic much faster than previously thought, reports my colleague Hanna Ziady. For many office workers around the United States, it also means more return-to-office mandates.
Persons: JPMorgan Chase, Bell, David Kotok, he’s, SIB, Jamie Dimon, J.P, Morgan, hasn’t, Hanna Ziady, John Springford, Andy Jassy, CNN’s Jeanne Sahadi, unaddressed, Merck Organizations: CNN Business, Bell, New York CNN, Silicon Valley Bank, UBS, JPMorgan, Republic Bank, Cumberland Advisors, , Credit Suisse, First, Federal Reserve, Office, National Statistics, ONS, Centre, European Reform, Labor, Amazon, Business Locations: New York, Silicon, First Republic, United States, Jekyll, America, Hanna Ziady ., Germany, Canada, Japan, Italy, France, Britain
Wells Fargo Bank branch is seen in New York City, U.S., March 17, 2020. REUTERS/Jeenah Moon Acquire Licensing RightsNEW YORK, Sept 5 (Reuters) - Wells Fargo (WFC.N) hired former Credit Suisse banker Jill Ford as its head of equity capital markets, the bank said in a statement. Ford is based in New York and will report Tim O'Hara, Wells Fargo's head of banking. Ford was most recently co‑head of equity capital markets for the Americas at Credit Suisse. Reporting by Lananh NguyenOur Standards: The Thomson Reuters Trust Principles.
Persons: Wells, Jill Ford, Ford, Tim O'Hara, Lananh Nguyen Organizations: REUTERS, Credit Suisse, Americas, Thomson Locations: Wells Fargo Bank, New York City, U.S, New York
The logo for Dell Technologies Inc. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 10, 2019. REUTERS/Brendan McDermid Acquire Licensing RightsSept 1 (Reuters) - Shares in Dell Technologies Inc (DELL.N) rose 22.2% and hit a record high on Friday after it raised full-year financial forecasts with boosts from artificial intelligence (AI) and stabilizing demand for computer hardware after a months-long slump. Dell, on track for its biggest ever daily percentage gain, is up more than 70% for the year-to-date. Servers and networking revenue rose 11% from the first quarter to $4.27 billion, driven by higher demand for AI-optimized servers, Dell said. At least 10 analysts raised their target prices for Dell's shares after the report with several including Credit Suisse and Evercore ISI citing its position to benefit from AI.
Persons: Brendan McDermid, Samik Chatterjee, Dell, JPMorgan's Chatterjee, Wells, Sinéad Carew, Lance Tupper Organizations: Dell Technologies Inc, New York Stock Exchange, REUTERS, Dell, CDW, Cisco Systems, Hewlett Packard Enterprises, Credit Suisse, ISI, JPMorgan, Thomson Locations: New York, U.S
The logos of Swiss bank Credit Suisse and UBS are seen in Geneva, Switzerland, June 7, 2023. The powerful central bank, Swiss National Bank (SNB), said it disagreed with some of the suggestions, including on liquidity and on how the authorities work. It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just metres apart. "(The) rescue of Credit Suisse isn't a perfect success but it's not a story of policy failure either. During the global financial crash of 2008, it was UBS, not Credit Suisse, that needed a state rescue.
Persons: Denis Balibouse, FINMA, Beat Wittmann, Nicolas Veron, it's, Oliver Hirt, John O'Donnell, Susan Fenton Organizations: Credit Suisse, UBS, REUTERS, Rights, UBS Group, Swiss, Swiss National Bank, , Suisse, Social Democrat, Porta Advisors, Peterson Institute for International Economics, Thomson Locations: Geneva, Switzerland, Rights BERN, Swiss, Washington, Zurich
Sept 1 (Reuters) - Pickering Energy Partners (PEP) is launching a financial advisory unit for oil and gas dealmaking, the investment firm said on Friday, doubling down on traditional fossil fuels as some banks are becoming wary about the industry and ramping up their bets on clean energy. The launch of the investment banking unit marks a return to oil and gas advisory services for Dan Pickering, the veteran energy financier who helped form Tudor, Pickering, Holt & Co, an energy boutique bank that was acquired by Perella Weinberg Partners (PWP.O) in 2016. Houston-based PEP has an existing investment banking unit that focuses solely on energy transition, while the firm's other offerings include equity research, investment funds, and consulting services. All non-compete agreements between the two firms have now expired, enabling Pickering to pursue oil and gas advisory work. Banks including BNP Paribas (BNPP.PA), Bank of Montreal (BMO.TO) and Bank of Nova Scotia (BNS.TO) have pulled back from oil and gas dealmaking over the past few years.
Persons: Dan Pickering, Tudor, Perella Weinberg, dealmakers, Jason Kivett, Robyn Underwood, Pickering, Banks, David French, Anirban Sen, Sherry Jacob, Phillips Organizations: Pickering Energy Partners, Holt & Co, Barclays Plc, Houston, BNP, Bank of Montreal, Bank of Nova, Credit Suisse, UBS Group AG, Reuters, Thomson Locations: Pickering, Bank of Nova Scotia, New York
In a memo to staff Ermotti said that 3,000 Swiss jobs would go, while more people would leave of their own accord, for example, through retirement. With a market value of 77 billion Swiss francs, UBS also struck an optimistic note about its short-term outlook. With Credit Suisse in Switzerland intact and independent, as some politicians had hoped, fewer jobs would have been hit. [1/2]Logos of Swiss banks Credit Suisse and UBS are seen before a news conference in Zurich Switzerland, August 30, 2023. Reuters GraphicsThe bumper profit results from a huge one-off gain that reflects how the acquisition costs were far below Credit Suisse's value.
Persons: Ermotti, Sergio Ermotti, Denis Balibouse, Jefferies, Brenna Hughes, John O'Donnell, Noele, Edwina Gibbs, Tomasz Janowski, Alexander Smith Organizations: UBS, Credit Suisse Swiss, Credit Suisse, UBS grapples, REUTERS, Swiss Bank Employees Association, Analysts, Deutsche Bank, Reuters, Credit, Thomson Locations: Switzerland, ZURICH, Swiss, Zurich Switzerland, Zurich, London
UBS Gets Everything It Wants From Credit Suisse
  + stars: | 2023-08-31 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/ubs-gets-everything-it-wants-from-credit-suisse-7a4f8328
Persons: Dow Jones Organizations: ubs, suisse, 7a4f8328
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/ubs-begins-next-act-in-credit-suisse-merger-926d98c2
Persons: Dow Jones Organizations: ubs, suisse
Logos of Swiss banks Credit Suisse and UBS are seen before a news conference in Zurich Switzerland, August 30, 2023. UBS also announced it would be keeping Credit Suisse's domestic bank - and the ensuing job losses are expected to result in a backlash in Switzerland. Hanging on to existing Credit Suisse clients is seen as key if UBS is to successfully pull off the Herculean deal. Groupwide UBS results include just one month of Credit Suisse earnings as the deal only closed in June. The bumper profit is due to a huge one-off gain that reflects how the acquisition costs were far below Credit Suisse's value.
Persons: Denis Balibouse, Ermotti, Sergio Ermotti, Noele Illien, John O'Donnell, Edwina Gibbs Organizations: Credit Suisse, UBS, REUTERS, Suisse, Thomson Locations: Zurich Switzerland, Switzerland, ZURICH, Swiss
Shares in Swiss bank UBS hit highest since late 2008
  + stars: | 2023-08-31 | by ( ) www.reuters.com   time to read: +1 min
The logo of Swiss bank UBS is seen at an office building in Zurich, Switzerland February 28, 2020. REUTERS/Arnd Wiegmann/File Photo Acquire Licensing RightsMILAN, Aug 31 (Reuters) - Shares in UBS (UBSG.S) hit their highest level since October 2008 on Thursday, extending a strong run that has put the Swiss bank well ahead of its European rivals following the takeover in March of its struggling rival Credit Suisse. UBS rallied more than 6% early in Zurich, set for its biggest one-day gain since March, after the group said it would fully absorb Credit Suisse's domestic bank and that it was increasing its ambitions for cost savings to over $10 billion. The stock has risen 36% so far in 2023 against a 13.5% gain for the broader European banking index (.SX7P). (This story has been refiled to change the dateline to Aug. 31, and not Aug. 30)Reporting by Danilo Masoni Editing by Amanda Cooper and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
Persons: Arnd, Danilo Masoni, Amanda Cooper, David Goodman Organizations: Swiss, UBS, REUTERS, Credit Suisse, Deutsche Bank, Thomson Locations: Zurich, Switzerland, Swiss
The magic of “badwill”When UBS agreed to buy its archrival, Credit Suisse, for a little over $3 billion this spring at the Swiss government’s behest, analysts and investors said that price represented a steep discount. UBS’s latest financial results reflect just how much of a steal it was. Today, the bank reported a $29 billion profit — yes, you read that right — for the second quarter, the biggest quarterly profit in banking history. But that paper gain belies the challenges that UBS faces as it moves to complete the largest takeover of a bank since the 2008 financial crisis. (It’s also known as “negative goodwill.”) UBS reported that its underlying profit for the quarter was just $1.1 billion.
Persons: , It’s Organizations: UBS, Credit Suisse
UBS earning results are 'historic,' says analyst
  + 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 EmailUBS earning results are 'historic,' says analystGildas Surry of Axiom Alternative Investments discusses the bank's second-quarter results, the first since the Credit Suisse takeover.
Persons: Gildas Surry Organizations: UBS, Credit Suisse
London CNN —UBS expects to shed around 3,000 jobs in Switzerland as it tries to save $10 billion from a sweeping overhaul of the global banking giant created by its emergency rescue of Credit Suisse earlier this year. “The Swiss Bank Employees Association demands that the 37,000 employees of the two institutions in Switzerland are treated fairly and equally in the integration process,” the Swiss banking union said in a statement. UBS (UBS) agreed on March 19 to buy Credit Suisse for the bargain price of 3 billion Swiss francs ($3.4 billion) in a rescue orchestrated by Swiss authorities to avert a banking sector meltdown. UBS posted net profit of $29 billion for the second quarter, reflecting a one-off boost from the acquisition of Credit Suisse at a fraction of its value. It also said it no longer required a 100 billion franc ($114.2 billion) government-backed loan and that Credit Suisse had repaid an earlier loan from Switzerland’s central bank of 50 billion francs ($57.1 billion).
Persons: , Sergio Ermotti, ” Ermotti, Organizations: London CNN, UBS, Credit Suisse, Swiss Bank Employees Association, Credit, ” UBS, Swiss, Switzerland Credit Suisse, Silicon Valley Bank, Signature Bank, Taxpayers, Locations: Switzerland, Swiss
Dozens of people are dead after a fire at a building in Johannesburg. The British Museum’s theft scandal is reigniting calls for the return of the Parthenon Marbles to Greece. Fast fashion tries to tackle its waste problem. Plus, Florida cleans up after Idalia and UBS warns of 3,000 job cuts. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices.
Organizations: Apple, Google, Reuters, UBS, Thomson, Reading, Museum, Credit Suisse Locations: Johannesburg, British, Greece, Florida, Reading Johannesburg
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
Logos of Swiss banks Credit Suisse and UBS are seen before a news conference in Zurich Switzerland, August 30, 2023. REUTERS/Denis Balibouse/File Photo Acquire Licensing RightsCompanies UBS Group AG FollowBERLIN, Aug 31 (Reuters) - The Swiss government expects no significant upheaval with regards to the labour market following the integration of Credit Suisse into UBS, Federal Councillor Guy Parmelin said on Thursday. "Possible redundancies are to be staggered. The labour market impact should therefore remain low, especially as the current labour market situation is generally very good," Parmelin said in a statement emailed to Reuters. Reporting by Noele Illien, Writing by Rachel More, Editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.
Persons: Denis Balibouse, Guy Parmelin, Parmelin, Noele Illien, Rachel More, Friederike Heine Our Organizations: Credit Suisse, UBS, REUTERS, UBS Group, BERLIN, Federal, Reuters, Thomson Locations: Zurich Switzerland, Swiss
UBS is planning to cut 3,000 jobs in Switzerland after its shock takeover of rival Credit Suisse. The shotgun marriage with UBS saved embattled Credit Suisse from possible collapse. AdvertisementAdvertisementUBS is planning to cut 3,000 jobs in Switzerland as it continues to integrate Credit Suisse following the shock takeover of its rival earlier this year. The company said Thursday that it plans to complete the integration of Credit Suisse by the end of 2026 and aims to cut costs by $10 billion during that period. Amid fears the 167-year-old financial institution could go under, the Swiss government brokered a shotgun marriage with UBS, with Credit Suisse being sold for 3 billion Swiss francs ($3.25 billion).
Persons: Sergio Ermotti, Ermotti Organizations: UBS, Credit Suisse, Suisse, Reuters, AG, Silicon Valley Locations: Switzerland, Schweiz, Swiss
CNBC Daily Open: Jobs growth slowed down. Markets shot up
  + stars: | 2023-08-31 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
Surveys suggest that despite cooling inflation and jobs gains, Americans remain deeply skeptical of the president's handling of the post-pandemic economy. Photographer: Al Drago/Bloomberg via Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Markets regain groundU.S. stocks rallied Wednesday on the back of weaker-than-expected economic data, giving the S&P 500 a four-day winning streak. But this could be an opportunity for investors to put their money into other Asian markets, analysts say.
Persons: Al Drago, downwardly, Organizations: Bloomberg, Getty, CNBC, UBS, Swiss, Credit Suisse, ADP, Japan's Nikkei Locations: Ocean City , New Jersey, US, Swiss, U.S, Asia, Pacific, Shanghai, China
UBS on Thursday 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. Underlying profit before tax, which excludes negative goodwill, integration-related expenses and acquisition costs, came in at $1.1 billion. The fate of Credit Suisse's flagship Swiss bank, a key profit center for the group and the only division still generating positive earnings in 2022, was a focal point of the acquisition. The emergency rescue deal that saw UBS purchase Credit Suisse at a heavily discounted 3 billion Swiss francs was mediated by Swiss authorities over the course of a weekend in March.
Persons: Read, — Elliot Smith Organizations: UBS, Credit Suisse, Credit, Suisse's, Swiss Locations: Swiss
When UBS agreed to buy its archrival Credit Suisse for a little over $3 billion this spring at the Swiss government’s behest, analysts and investors said that price represented a steep discount. UBS’s latest financial results reflect just how much of a steal it was. On Thursday, the bank reported a $29 billion profit in its second quarter — yes, billion with a “b” — the biggest quarterly profit in banking history. But that paper gain belies the challenges that UBS faces as it moves to complete the largest takeover of a bank since the 2008 financial crisis. That process will include absorbing some of its onetime competitor’s domestic footprint and shuttering a large portion of its investment banking operations.
Persons: , It’s Organizations: UBS, Credit Suisse
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUBS CEO Sergio Ermotti discusses first earnings report since Credit Suisse acquisitionUBS CEO Sergio Ermotti speaks to CNBC following the bank's first earnings report since its acquisition of stricken rival Credit Suisse was completed in June. UBS posted a $29 billion net profit as a result of negative goodwill from the deal.
Persons: Sergio Ermotti Organizations: UBS, Credit Suisse, CNBC
UBS cost-cut gains are a double-edged sword
  + stars: | 2023-08-31 | by ( Liam Proud | ) www.reuters.com   time to read: +4 min
LONDON, Aug 31 (Reuters Breakingviews) - UBS’s (UBSG.S) acquisition of Credit Suisse looks increasingly good – maybe a little too good. There were three key questions for shareholders ahead of UBS’s delayed second-quarter results on Thursday, its first since completing the emergency rescue of Credit Suisse in June. And what would UBS do with Credit Suisse’s local business? He’s keeping Credit Suisse’s Swiss business, which allows him to establish a dominant position at home and wring out juicy cost savings. And while some Credit Suisse businesses are disappearing, Ermotti won’t mind.
Persons: Boss Sergio Ermotti, Ralph Hamers, UBS’s, Ermotti, it’s, Sergio Ermotti, Neil Unmack, Streisand Neto Organizations: Reuters, Credit Suisse, UBS, Credit, Suisse’s, Suisse, Swiss Competition, Thomson Locations: Suisse’s Swiss, Switzerland, Schweiz
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
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