UBS hands EY one of biggest audit deals in global banking

afr.com:

London | UBS executives have chosen EY for one of the world’s most lucrative banking audit contracts after deciding to retain the big four firm following the bank’s takeover of Credit Suisse.

EY, which has been UBS’ external auditor since 1998, will audit the enlarged bank from 2024, according to people with knowledge of the decision. The size of the contract means EY will have to call in staff from other countries to work on the audit, two people said.

PwC, which had been Credit Suisse’s auditor, will audit the stricken bank’s accounts for 2023, according to people with knowledge of the matter.

Last year, UBS paid EY $US70 million ($103 million) in fees. 

UBS’ state-orchestrated takeover of Credit Suisse was completed last month but integrating the business into the wider group is expected to take several years.

The audits of UBS and Credit Suisse were already among the biggest in Europe on a standalone basis. Last year, UBS paid EY $US70 million ($103 million) in fees, while Credit Suisse paid PwC $US90 million – a 10 per cent rise on the year before – according to the banks’ annual reports.

The audit fee for the combined group is expected to be less than the sum of the standalone audits but would still be one of the highest in global banking.

HSBC paid its auditor PwC $US148 million last year, more than any other bank in Europe, while Barclays paid KPMG £71 million ($136 million). Wall Street trio Citigroup, JPMorgan Chase and Goldman Sachs each paid their auditors between $95 million and $103 million, according to Ideagen Audit Analytics data.

EY did not comment on whether it had been retained by UBS but said: “The size and scale of the global EY financial services audit practice means we are able to access resource