UBS shares were up by 4% as the Swiss banking giant cut costs faster than expected while moving forward with its merger with rival Credit Suisse.
Despite posting its first loss since 2017, UBS shares were up by 4% on Tuesday morning following the publication of its Q3 results, rising to CHF 22.66 (€23.56) at noon compared to CHF 21.76 five days before.
The bank’s underlying profit before tax reached €790 million as expenses linked to the Credit Suisse deal reached €2 billion, leading to a $785 million (€735 million) quarterly loss.
Yet the bank’s leadership remains positive.
“We are executing on the integration of Credit Suisse at pace and have delivered underlying profitability for the Group in the first full quarter since the acquisition,” said Sergio P. Ermotti, UBS CEO in a statement.
Ermotti - who returned to UBS in April following the Credit Suisse deal - added that the bank’s efforts were focused on strengthening a company that “all of our key stakeholders can be proud of”.
The bank said it was one quarter ahead of schedule in reaping savings from its restructuring operations.
The priority for UBS is to retain clients from both banks, especially in the Middle East region, according to the Financial Times. The company added in a summary of its statement that it “undertook extensive outreach to re-assure [its] clients” that it remains committed to keeping the best capabilities from both banks.
UBS tallied €35 billion in net new deposits in its wealth management and personal and corporate banking segments, two-thirds of that from Credit Suisse clients.
Big ambitions for UBS after the Credit Suisse deal
In March, UBS bought out its former rival, Credit Suisse, under pressure from the Swiss authorities, who wanted to avoid the collapse of the country's second-largest bank.
The deal was concluded in June this year for (€3 million when the deal was finalised). UBS has since initiated a reorganisation of Credit Suisse's activities.
When it published its quarterly results at the end of August, the banking giant announced that this division - which includes Credit Suisse's retail banking and mortgage business, as well as corporate loans in the Alpine country - was to be absorbed by UBS.
The Credit Suisse brand will eventually disappear, according to the head of UBS; in London, the logo has already been removed from the bank's building in the Canary Wharf business district, according to Bloomberg.
UBS is planning to cut 3,000 jobs in Switzerland, including 1,000 between now and 2024, as a result of overlaps associated with the decision to absorb Credit Suisse.
A further 2,000 jobs will be lost over the next few years as a result of the restructuring that the bank will have to carry out.
The headcount was down more than 4,000 during the third quarter, according to the company’s statement.