UBS to Retain Credit Suisse's Domestic Bank; Reports Net Profit of $28.88 Billion

By Cecilia Butini

UBS Group said Thursday that it would retain Credit Suisse's domestic bank and reported its first set of results since acquiring its former rival.

The Swiss lender, which completed the takeover of its ailing cross-town competitor in June, reported a net profit of $28.88 billion for the second quarter, against consensus expectations of $33.45 billion.

The retention of Credit Suisse's domestic bank will be the best outcome for UBS and the Swiss economy, Chief Executive Sergio P. Ermotti said. Analysts expected this to be UBS's decision and said it would be the best outcome for shareholders.

UBS also said that the Credit Swiss franchise has broadly stabilized with net deposit inflows of $18 billion in the second quarter, and said momentum is seen continuing into the third quarter.

UBS reported revenue of $9.54 billion and negative goodwill of $28.93 billion. A company-provided consensus had seen revenue at $43.15 billion in the quarter.

Operating profit clocked in at $29.24 billion, compared with consensus expectations of $33.73 billion.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

August 31, 2023 01:46 ET (05:46 GMT)

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