(CTN News) – As a result of its takeover of its fallen rival Switzerland’s Credit Suisse, UBS on Tuesday reported a higher-than-expected loss for the third quarter, as it integrates its newly acquired subsidiary.
There was a net loss of 785 million dollars (732 million euros) for the period. As part of AWP’s survey, analysts expected a loss of 430 million dollars based on predictions made by the agency.
Swiss authorities forced to take over Credit Suisse, its closest domestic rival, by strong-arming the bank with a $3.25 billion deal in March in a bid to become the country’s largest bank. UBS is the country’s largest bank by assets.
In the event that UBS announced that it would be acquiring the company at the time, investors gasped as they pointed out the risk that might be involved in the deal.
Toward the end of August, however, the Swiss government and central bank announced that the bank would not require any of the billions of dollars in support that they had offered to offset any surprise that might arise from its stricken rival’s accounts in the near future.
UBS Chief Executive Officer Sergio Ermotti reported on Tuesday that the integration of Credit Suisse is progressing at a rapid pace and that the Group has delivered underlying profitability for the first full quarter since the acquisition has been completed.
UBS has disclosed in its report that integration-related expenses totaled $2 billion for the third quarter of this year, and that Credit Suisse has now been stabilized, and that our franchise has continued to grow throughout the year.
A total of $33 billion have been deposited into the UBS system, of which nearly $22 billion have come from Credit Suisse, out of a total of $33 billion in net new deposits.