Key Points
- UBS completes take over of Credit Suisse days after signing a loss protection agreement with the Swiss government
- The bank is set to have an enlarged balance sheet of $1.6T and a workforce of over 120K
UBS becomes the new owner of Credit Suisse and its assets
UBS, a Swiss banking giant, has completed the takeover of Credit Suisse following its collapse in March 2023. The bank will now be in charge of a balance sheet worth over $1.6T and a workforce of around 120K professionals.
The news comes days after Fintech Express reported that the bank had completed a deal with the Swiss government for loss protection. On June 12, 2023, the bank said it had completed the deal and looked forward to the next chapter in its business journey and history.
“Instead of competing, we’ll now unite as we embark on the next chapter of our joint journey,” UBS Group’s new CEO Sergio Ermotti said in a statement.
UBS group is set to manage the two banks as separate entities in the short term while assessing options for the future of Credit Suisse’s assets for the future. In an open letter, Credit Suisse chiefs said they would not also want to compromise the string work culture at UBS or its conservative risk approach.
The Swiss banking giant said that it expects the operating losses and significant restructural changes at Credit Suisse to be offset as it seeks to ditch risk-weighted assets. It added that it foresees a common equity tier 1 capital ratio of around 14% for the remaining part of the year.
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