UBS posts first quarterly loss in six years due to Credit Suisse integration

Swiss banking giant UBShas reported its first quarterly loss in almost six years, mainly attributed to the ongoing process of integrating Credit Suisse into its operations, The Guardian reported on Tuesday.

According to the report, the bank revealed a net loss of $785 million for the three months ending in September, nearly double the $444 million forecasted by analysts. UBS cited approximately $2 billion in expenses related to the rescue and integration of Credit Suisse as the primary factor behind the loss.

The integration process has involved significant job cuts to reduce costs and eliminate duplicated roles across the combined entity. UBS confirmed that it had reduced over 4,000 jobs during the third quarter, contributing to a total of 13,000 job losses this year.

However, the bank highlighted its ability to attract new customer investments in its wealth management business. UBS managed to win back clients who had withdrawn their funds from Credit Suisse earlier in the year due to concerns about its stability.

UBS remains committed to the integration process, which is expected to create a stronger and more resilient financial institution. The integration aims to streamline operations and tap into the profitable aspects of Credit Suisse while winding down less favourable segments.

The merger between UBS and Credit Suisse, executed under tight time constraints, incurred an estimated $17 billion in costs, including expenses related to litigation, regulatory matters, and asset and liability adjustments.

Despite the associated risks, UBS sees Credit Suisse's acquisition for 3 billion Swiss francs as a strategic business opportunity.

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