UBS Shares Rise 4% Despite $785M Loss

UBS, the Swiss banking giant, saw a 4% increase in its shares despite reporting a $785 million loss following the Credit Suisse deal. Find out more about the bank's Q3 results and its optimistic outlook.

Despite reporting a $785 million loss following the Credit Suisse deal, UBS shares rose by 4%, showcasing the Swiss banking giant's resilience. Learn more about UBS's Q3 results and its optimistic outlook for the future.

UBS, the Swiss banking giant, saw a 4% increase in its shares as it managed to cut costs faster than expected and continued with its merger with rival Credit Suisse. Despite reporting its first loss since 2017, UBS shares rose to CHF 22.66 (€23.56) at noon on Tuesday morning, compared to CHF 21.76 five days prior, following the release of its Q3 results. The bank's underlying profit before tax reached €790 million, with expenses related to the Credit Suisse deal reaching €2 billion, resulting in a quarterly loss of $785 million (€735 million). However, the bank's leadership remains optimistic, stating that it is one quarter ahead of schedule in realizing savings from its restructuring operations.

UBS's priority is to retain clients from both banks, particularly in the Middle East region. The company reassured its clients that it is committed to maintaining the best capabilities from both banks, resulting in €35 billion in net new deposits in its wealth management and personal and corporate banking segments, with two-thirds of that coming from Credit Suisse clients.

In March, UBS acquired Credit Suisse under pressure from Swiss authorities to prevent the collapse of the country's second-largest bank. The deal was finalized in June for €3 million, and UBS has since initiated a reorganization of Credit Suisse's activities. The division, which includes Credit Suisse's retail banking and mortgage business, as well as corporate loans in Switzerland, will be absorbed by UBS, leading to the eventual disappearance of the Credit Suisse brand.

As a result of the decision to absorb Credit Suisse, UBS plans to cut 3,000 jobs in Switzerland, including 1,000 by 2024, with a further 2,000 jobs to be lost over the next few years due to restructuring. The company's headcount was down by more than 4,000 during the third quarter, according to its statement.

Despite reporting a loss, UBS's shares saw a significant increase as the bank remains optimistic about its cost-cutting measures and the progress of its merger with Credit Suisse.