A 'historic' result but still a 'construction site': Analysts react to blowout UBS earnings
Publishing timestamp: 2023-08-31 11:08:34
Summary
UBS reported a second-quarter net profit of $28.88 billion, largely due to negative goodwill from its acquisition of Credit Suisse. UBS also announced plans to fully integrate Credit Suisse's Swiss banking unit by 2024, resulting in job redundancies. Despite the positive earnings report, UBS is still considered a "construction site" in the near term. However, the stabilization of Credit Suisse and the reversal of net asset outflows have boosted investor confidence. UBS also ended its loss protection agreement and liquidity backstop with the Swiss government. The prospect of further layoffs may be unpopular, but it is seen as necessary for the stability of the bank. UBS plans to wind down noncore units of Credit Suisse's investment bank, wealth management, and asset management divisions. The market will closely watch UBS' efforts to wind down these divisions and its CET1 ratio.
Sentiment: MIXED
Tickers: UBSG-CH,
Keywords: markets, banks, wall street, ubs group ag, breaking news: investing, business news, breaking news: markets, investment strategy,
Source: https://www.cnbc.com/2023/08/31/a-historic-result-analysts-react-to-blowout-ubs-earnings.html