UBS has posted a net profit of $28.8 billion for Q2 2023, which came with its first quarterly numbers after completing the takeover of rival Credit Suisse. The astronomical number was reached due to a one-off gain with lower acquisition costs than the value of Credit Suisse.

UBS Gained from the Credit Suisse Takeover

According to the official numbers posted today (Thursday), the Swiss generated a total revenue of $9.5 billion against the previous quarter's $8.7 billion. After "negative goodwill" of $28.9 billion from the Credit Suisse acquisition, its operating profit swelled to over $29.2 billion. Its underlying pre-tax profit, which excludes negative goodwill, integration-related expenses, and acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term costs, was reported at $1.1 billion.

The net profit of UBS was $1.02 billion in the first quarter of the year and $2.1 billion in the second quarter of the previous year. There was an annual drop of 52 percent in Q1 net profit due to litigation costs related to US mortgage-backed securities.

"Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history," said the CEO of UBS, Sergio Ermotti.

"We are winning back the trust of clients, reducing costs, and taking the necessary actions to create economies of scale that will allow us to better focus our resources and target investments for future growth."

UBS to Absorb Credit Suisse

Along with the financials, UBS revealed that it would fully absorb Credit Suisse's domestic banking unit. The merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term is expected to close in 2024.

"Our analysis clearly shows that full integration is the best outcome for UBS, our stakeholders, and the Swiss economy," added Ermotti. "Clients will continue to receive the premium level of service they expect, benefiting from enhanced offerings, expert capabilities, and global reach."

UBS bought its arch-rival Credit Suisse last March for 3 billion Swiss francs in a hasty deal urged by the Swiss government. The authorities wanted to avoid a banking crisis in the country and granted an emergency greenlight that bypassed the shareholders' approval of both banks.

However, many feared that a merger would result in the loss of thousands of jobs.

Furthermore, UBS is expecting cost-savings of about $10 billion by the end of 2026 from the deal, which enlarged from an earlier estimate of $8 billion by 2027. Most of the savings would result from the reduced headcount.