UBS Flags Cost Cuts After $29 Billion Credit Suisse Windfall
- Lender reports $29 billion accounting gain on Credit Suisse
- Bank to cut some 3,000 positions in Switzerland integration
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UBS Group AG outlined major targets for its integration of former rival Credit Suisse including 3,000 domestic job cuts and more than $10 billion in cost savings, as it posted the biggest ever quarterly profit for a bank on the back of the bargain acquisition that closed in June.
The Zurich-based lender reported a $29 billion profit before tax in the second quarter, a result of the accounting difference between the $3.8 billion price UBS paid for Credit Suisse and the value of the acquired lender’s balance sheet. The bank confirmed that Credit Suisse’s local unit will be completely absorbed into the parent company and the brand retired, likely by 2025.