Swiss Giant UBS Posts Record Q2 2023 Net, but Most Comes from Acquisition Related Negative Goodwill
Since the completion of the acquisition of Credit Suisse by Switzerland's largest bank, UBS (UBS) has posted a profit of $28.88 billion in Q2 2023.
Since the completion of the acquisition of Credit Suisse by Switzerland's largest bank, UBS (UBS) has posted a profit of $28.88 billion in Q2 2023. The consensus forecast was for a net profit of $12.8 billion in the three months to June, compared with a net profit of $2.1 billion for the same period in 2022. Diluted earnings per share (EPS) stood at $8.99, up from $0.61 in Q2 2022. Total revenues came in at $95 billion, posting an annual increase of 6.7%.
Excluding negative goodwill, integration-related expenses and acquisition costs, 2Q 2023 pretax profit was $1,144 million, with a cost/income ratio of 80.3% and a return on CET1 (Tier 1) capital of just 4.5%.
UBS said the result mostly reflected negative goodwill of $28.93 billion from the Credit Suisse acquisition. UBS bought Credit Suisse for a discounted 3 billion Swiss francs ($3.4 billion) in March. Earlier this month, UBS announced the termination of a 9 billion Swiss franc ($10.24 billion) loss protection agreement and a 100 billion Swiss franc public liquidity support agreement set in place by the Swiss government when it bought Credit Suisse in March.
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