雅虎香港財經 UBS stock soars to 15-year high after blockbuster profit from Credit Suisse deal
In March Swiss regulators pushed for UBS to take over smaller rival Credit Suisse as a way of tamping down unfolding chaos in the global banking system. Five months later, the stock of UBS is at a 15-year high.
The latest catalyst came Thursday as UBS reported a record $29 billion quarterly profit due to an accounting gain from the Credit Suisse purchase. It is the biggest quarterly profit for any bank ever, exceeding the $14.5 billion earned by JPMorgan Chase (JPM) last quarter.
UBS (UBS, UBSG.SW) stock surged 7% at the open of Thursday's trading in the US. Year to date it has climbed more than 43%, reaching its highest price since 2008.
The blockbuster gain recorded by UBS is the latest example of how some banks were able to benefit from the turmoil of the spring by absorbing troubled rivals with help from their governments.
JPMorgan's second quarter profit, which ballooned by 67%, got a major boost from a $2.6 billion gain tied to its rescue of First Republic in May after regulators seized the San Francisco lender and sold the bulk of its operations to the largest bank in the US.
First Citizens (FCNCA), a sizable regional bank, also benefitted after it purchased assets from the failed Silicon Valley Bank, which was seized by regulators on March 10 during the initial wave of panic that roiled the industry.
The deal helped make the Raleigh, N.C.-based institution the second-most profitable US bank for the first three months of the year.
The union of UBS and Credit Suisse created a mega institution with $5.5 trillion in assets. After some deliberation, UBS said it will fully integrate Credit Suisse’s large Swiss bank into its operations as opposed to spinning it off.
That integration will bring $10 billion in cost reductions including layoffs of approximately 3,000 employees expected to begin in late 2024 and spread out over several years. The integration of the two Swiss banks is expected to finish by the end of 2026.
"Given the events leading up to the acquisition, stabilizing the Credit Suisse client franchises globally has been our most immediate priority," Sergio P. Ermotti, UBS Group chairman and CEO, told analysts Thursday.
The Credit Suisse franchise brought in $18 billion in net deposits over the quarter. UBS also attracted more money from wealthy clients. It said it attracted $16 billion in net new assets for its enormous wealth management business, the operation's highest second quarter inflows in over a decade.
Excluding acquisition-related costs, Credit Suisse AG reported a pretax net profit loss of $10.1 billion.
Ermotti, who stepped down from the role in 2020, was asked to return to the bank’s top seat in April to lead it through the enormous transaction.
"Since closing in June, we have won back clients' confidence, as evidenced by the positive asset flows and strong engagement across wealth management, and the Swiss business," he added.
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