UBS reports Q3 loss amid integration expenses
ZURICH (Reuters) — UBS Group reported a $785 million third-quarter loss on Tuesday after booking $2.1 billion in expenses tied to the Swiss bank's takeover of fallen rival Credit Suisse.
The figure compared with the $444 million loss attributed to shareholders that analysts estimated in a UBS poll.
Excluding takeover-related impact, UBS reported underlying profit of $844 million.
«We are executing on the integration of Credit Suisse at pace and have delivered underlying profitability for the Group in the first full quarter since the acquisition,» said Chief Executive Sergio Ermotti.
Since the shotgun marriage — the first merger of two global systemically important banks — was completed in June, UBS has wrestled to stabilise its purchase.
The bank reported a combined $18 billion of net new money in wealth management, with $3 billion from Credit Suisse.
Analysts at Goldman Sachs had expected $14 billion for the group, with the Swiss bank already disclosing $8 billion for the months of July and August.
With the takeover, UBS now oversees more than $5 trillion in assets. It has been working to recover from the exodus of client funds from Credit Suisse with above-market rates on deposits. It is also trying to retain clients that would have had funds in both banks and may now look to spread risk.
It has also forged ahead with the integration by cutting down its headcount.
UBS said it employed 115,981 people at the end of September, down from the 119,100 full-time equivalents working at the combined bank at the end of June.
UBS has said it would axe a number of jobs including 3,000 in Switzerland alone, to achieve cost savings following the takeover.
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