Impact

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">UBS, Switzerland’s largest bank, <a aria-label="posted a net loss of $785 million in Q3 (opens in a new tab)" href="https://www.wsj.com/finance/banking/ubss-takeover-of-credit-suisse-was-a-steal-now-comes-the-bumpy-part-3d573501?mod=latest_headlines" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">posted a net loss of $785 million in Q3</a>, the first negative income in nearly six years. However, the bank’s US-listed shares rose 1.3% at the market open as investors saw the loss as a temporary blow caused by the complex <a href="https://tokenist.com/why-credit-suisses-ubs-deal-seems-like-an-extraordinary-bailout/" rel="noopener noreferrer nofollow" class="deco-link">Credit Suisse deal</a> while finding several positives in the report.</p>
<h3 id="ubs-reports-pretax-income-of-844-billion-excluding-credit-suisse-acquisition-impact">UBS Reports Pretax Income of $844 Billion, Excluding Credit Suisse Acquisition Impact</h3>
<p>UBS reported a net loss of $785 million for the third quarter, almost double what analysts expected. This is also the first quarterly loss for the Swiss lender in almost six years.</p>
<p>However, the company’s shares rose higher in both Europe and the US as investors overlooked the major loss that is mostly tied to UBS’s shock acquisition of its rival Credit Suisse earlier this year. In fact, investors saw many positives in the <a href="https://www.ubs.com/global/en/investor-relations/financial-information/quarterly-reporting.html" target="_blank" aria-label="report (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">report</a>.&nbsp;</p>
<p>To be more specific, the results showed that after a set of challenges brought on by the Credit Suisse deal, UBS’s core operations are recovering. Excluding the impact of the acquisition, the lender’s pretax income would have been $844 billion, its executives said.&nbsp;</p>
<p>More importantly, the report demonstrated significant strength in UBS’s wealth management division. Notably, the wealth management unit generated $18 billion in net money, and many of those rich customers are now returning to the rescued Credit Suisse as well.&nbsp;</p>
<p>In Q4 2022, wealth management clients withdrew $95 billion in net assets from Credit Suisse. For comparison, they now brought back $3 billion. Regarding Swiss business, in particular, both banks saw growth in deposits despite intensifying competition.&nbsp;</p>
<div class="cta-referral"><img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p>
 </div>
</div>
<h3 id="ubs-credit-suisse-deal">UBS-Credit Suisse Deal</h3>
<p>Not long after the <a href="https://tokenist.com/four-us-bank-failures-in-four-months-is-the-wave-over/" rel="noopener noreferrer nofollow" class="deco-link">2023 banking crisis</a>, UBS completed the emergency takeover of the troubled rival Credit Suisse in June, becoming a Swiss banking giant with almost $1.7 trillion in assets.&nbsp;</p>
<p>The move, the biggest banking tie-up since the 2008 global financial crisis, saw UBS acquire Credit Suisse for a bargain price of 3 billion Swiss francs ($3.25 billion) in a bailout deal orchestrated by Swiss authorities to prevent a banking sector breakdown. Switzerland’s government said that allowing Credit Suisse to collapse would have probably triggered an international financial crisis.&nbsp;</p>
<p>However, although UBS bought Credit Suisse at a heavy discount and secured a <a href="https://www.wsj.com/finance/banking/ubs-gets-everything-it-wants-from-credit-suisse-7a4f8328" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">one-off gain of $29 billion</a>, the merger caused numerous headaches for the Zurich-based bank. These include significant integration costs of around $2 billion and the day-to-day operations of an unprofitable bank. This resulted in a substantial loss in UBS’s “noncore and legacy” division,” which contains numerous positions and businesses the bank wants to eliminate.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Do you think UBS will return to profitability in the coming quarters? Let us know in the comments below. </strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/ubs-shares-gain-at-market-open-despite-785m-loss-in-q3-heres-why/">UBS Shares Gain at Market Open Despite $785M Loss in Q3, Here’s Why</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

UBS Shares Gain at Market Open Despite $785M Loss in Q3, Here’s Why

Table of Contents

Tokenist

Other articles published on Nov 7, 2023

Join eTukTuk’s revolution – Only few hours left at the current price

Did Binance Web3 Wallet the Next Generation of Web3 Wallets & the Key to Onboarding the Next Billion

Breaking: Dubai Sets Nov. 17 Deadline for Crypto Licensing Compliance

Toncoin Price might Soar High as its Blockchain becomes the FASTEST?

Unlock Your Trading Prowess: Bybit’s VIP Grand Prix Offers a Season of Competition

Binance-related tokens see price surge ahead of blockchain week

Join our free newsletter for daily crypto updates!