UBS to absorb Credit Suisse's local bank, cut jobs

Reuters Videos
1 年前

STORY: UBS shares soared Thursday (August 31) after the lender said it would fully absorb Credit Suisse's domestic bank.

The decision comes despite a likely backlash in Switzerland, where it could result in the loss of thousands of jobs.

The domestic bank has been a solid profit-maker for Credit Suisse.

Now UBS CEO Sergio Ermotti said the lender's analysis clearly showed a full integration is the best outcome for both the bank and the Swiss economy.

He expects clients to be fully migrated onto UBS systems in 2025.

Investors also liked hearing the lender had raised its ambitions for cost savings to more than $10 billion across the group by 2026.

That was up from an earlier estimate of $8 billion by 2027.

Most savings are due to come from reducing headcount.

On that, Ermotti said in a memo UBS would cut 3,000 jobs in Switzerland over the coming years as it integrates Credit Suisse.

The announcements came at the same time as UBS's first earnings report since it took over its one-time rival.

It scored a net profit of $29 billion for the second quarter.

Shares in UBS initially shot up 6% on the update to their highest level since October 2008, before scaling back.

The stock has risen by more than a third so far this year.