UBS Group AG (UBS) Q2 2023 Earnings Call Transcript
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UBS to Accelerate Credit Suisse Integration as $10 Billion Safety Net Ends
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(Bloomberg) UBS Group AG is gearing up for an estimated $34.8 billion gain as a result of its emergency takeover of Credit Suisse Group AG, while warning it faces billions in potential legal and regulatory costs from the rescue of its stricken former rival. The Swiss bank stands to benefit from the combined firms’ negative goodwill, based on a first assessment it has made on data as of the end of 2022, according to a regulatory filing posted overnight in Switzerland. At the same time, UBS sees mark-downs of about $13 billion on Credit Suisse assets and is also estimating that legal liabilities may cost as much as $4 billion over 12 months. The figures are based on the bank’s best estimates now, and as further analysis is performed are likely to change, UBS said. Negative goodwill occurs when the book value of a company is more than the price paid by the acquiring firm, and can result in a profit on paper for the buyer when the deal closes. UBS agreed to take over Credit Suisse th