News

UBS Reports Loss in Q3 Due to Merger Costs

1 Mins read

UBS, the Swiss banking giant, has announced a loss in the third quarter, mainly attributed to the high costs associated with its merger with Credit Suisse.

Merger Takes a Toll

After merging with its rival Credit Suisse earlier this year, UBS (ticker: UBS) recorded its first loss in six years. The integration process resulted in significant layoffs, write-downs, and administrative expenses. If it weren’t for these integration costs, UBS would have achieved a pretax profit of $800 million. However, the actual loss for the quarter amounted to $785 million.

A Price Worth Paying

Despite the losses incurred, the scale of UBS’s gains through the acquisition remains remarkable. The purchase price of Credit Suisse was merely a fraction of the value of its assets. Consequently, UBS enjoyed a staggering $29 billion profit in the second quarter, setting a new record for any bank.

Controversy and Criticism

The mega-deal raised concerns in Switzerland regarding potential job losses and reduced competition. Moreover, the terms of the acquisition appeared overwhelmingly advantageous for UBS. In fact, one politician described it as the “deal of the century.”

Government Intervention

Initially hesitant to take over its crosstown rival, UBS eventually succumbed to market pressure. The Swiss government stepped in to facilitate the deal by providing guarantees against losses, ensuring its successful completion.

Wealth Management Wins

In the third quarter, UBS announced impressive results in its wealth management business, attracting $22 billion in new investments. Notably, $3 billion of these new investments came from Credit Suisse’s wealth management team, which experienced net inflows for the first time since Q1 2022.

Market Response

Following the announcement, UBS shares surged by 5% in Swiss trading on Tuesday. In premarket trading, its American depositary receipts also saw a positive gain of 3.2%.

Related posts
News

SIM Mining Announces Global Launch of Next-Gen Cloud Mining Platform!

1 Mins read
London, UK, July 14, 2025 (GLOBE NEWSWIRE) — Revolutionizing Crypto Income: No Hardware, No Hassle – Just Daily Profits. In today’s fast-growing…
News

RICH Miner leads the Ripple cloud mining revolution - converting XRP into daily stable income

3 Mins read
WinnerMining free cloud mining APP helps zero-investment users earn BTC and XRP! Turn your phone into a mining machine There is no…
News

GCCI hosts strategic meeting with APMIA Chairman - Daily Times

1 Mins read
The Gujranwala Chamber of Commerce and Industry (GCCI) recently hosted a strategic meeting with Muhammad Bilal Khan, Chairman of the All Pakistan…

Leave a Reply

Your email address will not be published. Required fields are marked *