UBS Advances Integration of Credit Suisse, Reports Key Progress

UBS today announced progress in the ongoing integration of Credit Suisse, following the merger completed on 31 May 2024. The consolidation marks a crucial phase in UBS’s strategic expansion, as the bank successfully absorbed all rights and obligations of Credit Suisse, including its outstanding debt instruments.

A key milestone in this process was the merger of UBS Switzerland AG and Credit Suisse (Schweiz) AG, finalized on 1 July 2024. This merger ensures UBS Switzerland AG inherits all the rights and obligations of Credit Suisse (Schweiz) AG, a move that will streamline operations and enable further integration of clients and services across UBS’s platforms.

UBS’s integration strategy aims to unlock substantial cost, capital, funding, and tax benefits by the end of 2026. The recently completed mergers are going to facilitate the smooth migration of Credit Suisse’s clients and operations to UBS’s systems, aligning with specific business and client needs.

UBS Advances Integration of Credit Suisse, Reports Key Progress

In its Q2 2024 report, UBS highlighted adjustments made under IFRS Accounting Standards, which led to a slight reduction in the provisional negative goodwill to USD 27.3 billion from the previously reported USD 27.7 billion. This adjustment also impacted retained earnings, revising prior-period income by a net USD 0.5 billion.

The finalization of these adjustments marks the completion of the accounting for the Credit Suisse acquisition. Additionally, UBS reported realizing an extra USD 0.9 billion in gross cost savings in the second quarter, bringing the total to approximately USD 6 billion in annualized exit rate savings compared to the 2022 combined cost base of both banks. UBS is on track to achieve around USD 7 billion in gross cost savings by the end of 2024, progressing towards its goal of USD 13 billion by 2026.

Moreover, UBS announced that Credit Suisse (Schweiz) AG has fully repaid the CHF 19 billion Emergency Liquidity Assistance (ELA) facility as of Q2 2024, clearing its outstanding obligations.

In June 2024, the Credit Suisse supply chain finance funds (SCFFs) offered to redeem all outstanding fund units to investors, which expired on 31 July 2024. Approximately 92% of the SCFFs’ net asset value was tendered and accepted, with the redemption of units occurring at 90% of their February 2021 net asset value.

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