UBS Q2 Profit Surges, Sees Breakeven Underlying PBT In Q3; To Integrate Credit Suisse (Schweiz)

(RTTNews) - Swiss banking major UBS Group AG (UBS) reported Thursday significantly higher profit in its second quarter primarily reflecting a $29 billion negative goodwill on the acquisition of Credit Suisse Group, as well as higher revenues. The company also announced its decision to integrate Credit Suisse (Schweiz) AG. Closing of the legal entity merger is expected in 2024.

The latest results included results for the former Credit Suisse business from June 1, 2023.

For the second quarter, Group net profit attributable to shareholders was $28.88 billion or $8.99 per share, up from last year's $2.11 billion or $0.61 per share. Profit before tax was $29.24 billion, higher than $2.62 billion a year ago.

The latest results included $28.93 billion of negative goodwill and $830 million integration-related expenses and acquisition costs.

Credit Suisse AG reported a second-quarter US GAAP pre-tax loss of 8.9 billion Swiss francs. Adjusted pre-tax loss was 2.1 billion francs.

Credit Suisse sub-group loss before tax for the month of June was $1.21 billion, including net credit loss expenses of $724 million and integration-related expenses and acquisition costs of $374 million.

UBS' underlying group profit before tax was $1.1 billion for the second quarter, of which $2.0 billion was from the UBS sub-group.

Total revenues grew to $9.54 billion from last year's $8.92 billion.

Looking ahead for the third quarter, UBS expects underlying profit before tax for UBS Group to be at around breakeven, and to deliver positive underlying profit before tax in the second half, supported by various levers, including revenue stabilization, cost saves and lower funding costs.

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