UBS to cut 35,000 jobs after Credit Suisse rescue: report

UBS is set to cut 35,000 jobs at Credit Suisse as part of its emergency takeover, following the collapse and bailout of the latter.

UBS set for ‘bumpy’ integration of Credit Suisse

UBS is set to finalize its acquisition of Credit Suisse, but the integration process is expected to be challenging. UBS Chief Sergio Ermotti warned of difficult decisions and job losses, while concerns about the size and political implications of the megabank have been raised. Talent retention and potential spin-offs of business units are among the key challenges. The merger is seen as necessary to prevent a financial crisis, with the Swiss government and central bank providing support and guarantees. The full impact of the merger will become clearer after the release of second-quarter financial results.

UBS says to complete Credit Suisse takeover on 12 June

Swiss banking giant UBS is set to finalize its acquisition of troubled domestic rival Credit Suisse by 12 June, according to both banks. The completion date is slightly later than previously anticipated. UBS agreed to purchase Credit Suisse for three billion Swiss francs (US$3.25 billion) under government pressure to prevent its collapse. Upon completion, Credit Suisse shares and American Depositary Shares will be delisted, creating a superbank overseeing US$5 trillion of invested assets, according to UBS CEO Sergio Ermotti.

UBS merger with Credit Suisse raises job fears at home

The merger between UBS and Credit Suisse has raised concerns about job security and competition in Switzerland’s banking sector. The fate of Credit Suisse’s domestic retail banking division remains uncertain, with options including integration into UBS, a sale, or a share offering. Some investors favor a spin-off to protect jobs and avoid concentration of risks in a single bank. Analysts suggest that carving out the front office of Credit Suisse Switzerland could create value and alleviate concerns about the size of the merged entity.

UBS says Credit Suisse CEO to join board in mega merger

Credit Suisse CEO Ulrich Koerner will join UBS’s executive board as the Swiss banking giant absorbs its fallen rival. The move comes after the Swiss government pressured UBS to acquire Credit Suisse due to concerns over its financial health following recent scandals. Koerner, a former UBS executive, will ensure operational continuity and client focus while supporting the integration process. The merger is expected to be completed in the next few weeks, with UBS emphasizing a phased approach to integration.

UBS posts US$1.0 bn Q1 net profit, Credit Suisse takeover completion set for Q2

UBS expects to complete the takeover of Credit Suisse in Q2, as it reports a net profit of $1bn for Q1, down from US$2.1bn last year. Credit Suisse reported US$70bn being withdrawn in Q1, potentially its final results ahead of the merger. Analysts had expected UBS’s Q1 net profit to be around US$1.7bn.

Over US$68 bn withdrawn from Credit Suisse ahead of UBS takeover

Credit Suisse saw YS$68 billion in withdrawals in Q1 2023, likely its final results before its merger with UBS. The bank’s net profit surged to CHF12.4 billion, up from a significant loss a year earlier after holders of high-risk debt were wiped out. The bank suffered scandals and became the weakest link after three US regional banks collapsed in March 2023. Swiss authorities organised an emergency rescue, pressuring UBS to agree to a US$3.25bn mega merger on the evening of 19 March.

UBS shareholders to weigh in on Credit Suisse mega-merger

UBS shareholders confront the bank’s leadership over the hastily arranged merger with Credit Suisse, engineered by the Swiss government, central bank, and financial regulators. Concerns arise about the risks and “bad culture” from Credit Suisse bleeding into UBS, as well as the disputes and risky business sectors UBS will inherit. Credit Suisse shareholders express disappointment as the value of their investment plunges, and some UBS shareholders seek a review of the exchange ratio. The AGM takes place in Basel, with former CEO Sergio Ermotti returning to handle the integration process. UBS becomes a banking colossus with $5 trillion of invested assets. UBS shares close slightly up, while Credit Suisse’s value has plummeted. The Ethos foundation considers legal action for a review of the exchange ratio.

Credit Suisse chiefs say sorry to shocked shareholders

Credit Suisse chairman Axel Lehmann apologized to shareholders at the bank’s final AGM, stating that he was “truly sorry” that the bank could not be saved. The AGM came 16 days after Credit Suisse was taken over by larger Swiss rival UBS, in a mega-merger in which the shareholders of both banks had no say at all. Shareholders voiced their frustrations, with some in tears, as they counted the cost of the bank’s implosion.

Credit Suisse chiefs face the music at AGM

Credit Suisse shareholders will express their frustrations with the bank’s takeover by UBS at the annual general meeting in Zurich, with the AGM being held at the Hallenstadion on Tuesday. Shareholders had no say in the mega-merger arranged by the Swiss government, the central bank, and the financial regulator, causing unease across Switzerland. The meeting will allow shareholders to express their dissatisfaction or anger until the takeover is complete.