UBS Group has set aside more money to draw a line under its involvement in toxic mortgages, halving its first-quarter profit as it prepares to swallow fallen rival Credit Suisse .
Chief Executive Sergio Ermotti, back in the saddle to steer the takeover, also said "challenging" economic conditions had dampened the mood of the bank's customers and warned of the difficulties ahead as it embarks on an integration process that may take four years.UBS's stock opened down 4.6%.
UBS said concerns about the banking sector globally persisted and customer activity "could remain subdued in the second quarter", adding, however, that higher interest rates would bolster lending income. Net profit attributable to shareholders came in at $1 billion, below the $1.7 billion consensus average from a UBS-conducted poll.Its flagship wealth management division received $28 billion in net new money, a quarter of which came in the last ten days of March after the announcement that it would be taking over Credit Suisse.
In November 2018, U.S. authorities commenced legal action against the Swiss bank, seeking penalties for its involvement in scores of such deals. UBS subsequently lost a court case on the matter.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Credit Suisse faced $69B in Q1 outflows, more than UBS market capCredit Suisse faced a staggering $69 billion of outflows in the first quarter, an amount that eclipses UBS's market cap
Read more »
Over $68 bn withdrawn from Credit Suisse ahead of UBS takeover - BreitbartTens of billions were withdrawn from Credit Suisse in the first three months of 2023, the bank’s earnings report showed Monday, providing clues to the towering challenges ahead as UBS prepares an emergency takeover.
Read more »
UBS Attracts Customers Ahead of Credit Suisse IntegrationUBS reported strong customer inflows as it prepares to swallow Credit Suisse, in the first banking megamerger for years.
Read more »
Credit Suisse saw $68 billion in first-quarter outflows as it crumbledCredit Suisse said on Monday 61 billion Swiss francs ($68 billion) left the bank in the first quarter, shedding light on the scale of the bank run that caused the 167-year-old institution to crumble and forced its state-engineered rescue.
Read more »
Credit Suisse suffered outflows of 61.2 billion Swiss francs in first quarterThe first-quarter result comes as the Zurich-based bank is being taken over by Swiss peer UBS as part of an emergency measure to shore up confidence in the...
Read more »
Credit Suisse saw $68 billion in first-quarter outflows as it crumbled By Reuters*CREDIT SUISSE SAW $68 BILLION IN FIRST-QUARTER OUTFLOWS AS IT CRUMBLED $CS
Read more »