UBS surpasses profit prospects after Credit Suisse merger, shows robust financial progress
Date
8/14/2024 4:33:47 AM
(MENAFN) UBS, Switzerland's largest bank, announced a net profit of USD1.14 billion for the second quarter, surpassing analysts' expectations by a wide margin. This marks the bank's first earnings report since finalizing its merger with former rival Credit Suisse. The reported net profit was significantly higher than the USD528 million forecasted by analysts, highlighting the bank's strong performance in the wake of its acquisition. UBS's takeover of Credit Suisse was a government-backed rescue operation following the latter's collapse due to a series of financial challenges and scandals. In terms of overall performance, UBS also reported total group revenue of USD11.9 billion, which exceeded the anticipated USD11.6 billion, further underscoring the bank's successful integration and operational execution.
In a statement, UBS Chief Executive Officer Sergio Ermotti emphasized that the first-half results are a testament to the substantial progress made since the completion of the Credit Suisse acquisition. Ermotti expressed confidence in UBS's ability to meet its financial targets and return to the profitability levels seen before the bank was called upon to rescue Credit Suisse. The CEO's remarks reflect the bank's strategic positioning and its capacity to deliver on commitments made to shareholders during a period of significant transformation. UBS's strong financial performance in this quarter demonstrates its resilience and ability to navigate complex market conditions while integrating a major acquisition.
UBS also highlighted its success in achieving USD900 million in additional cost savings, which brings the bank closer to its cumulative annual cost reduction targets, having reached approximately 45 percent of these goals. Furthermore, UBS has made significant strides in reducing non-core and risk-weighted assets, cutting them by 42 percent since the second quarter of last year. This includes a reduction of USD8 billion on a quarterly basis, illustrating the bank's effective risk management and focus on maintaining a robust financial position. These efforts, coupled with the positive financial results, position UBS favorably as it continues to capitalize on the opportunities arising from the Credit Suisse acquisition and its broader strategic objectives.
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