Swiss bank UBS is ahead of schedule in its cost savings efforts and integration of Credit Suisse, according to CEO Sergio Ermotti. Speaking at a Bank of America conference, Ermotti mentioned that UBS is making market share gains and its investment bank is progressing as expected. The bank is currently around six months ahead of schedule in terms of cost progress, non-core legacy assets wind down, and simplifications. Ermotti expressed confidence in UBS’s trajectory, stating that things are going well.
UBS acquired Credit Suisse for 3 billion Swiss francs last year in a government-engineered takeover after Credit Suisse faced scandals and losses that led to a liquidity crisis. The deal resulted in Switzerland having a single global bank with a balance sheet double the size of the country’s annual economic output, raising concerns about market dominance. Ermotti mentioned that UBS had completed the legal entity mergers of Credit Suisse, obtaining 180 regulatory approvals from 80 regulators worldwide, setting the stage for further cost reductions.
After the update, UBS shares rose by 3.5% in morning trading, reflecting a positive market response to the bank’s progress. Ermotti acknowledged a constructive market environment in the second quarter but cautioned that the third quarter might present challenges in dealmaking. Despite this, he expressed confidence in UBS’s ability to capitalize on its investments. Overall, UBS seems to be on track with its strategic goals and is effectively navigating through its integration with Credit Suisse to drive growth and efficiencies in the future.
