UBS Group is set to announce its second-quarter results on Thursday, providing insight into the future of the recently-acquired Credit Suisse. Here are the key details you need to know:
Revenue Forecast
The Swiss lender is projected to report a revenue of $43.15 billion. This figure includes one-off items related to the finalized acquisition of Credit Suisse, as indicated by the company’s consensus.
Operating Profit Forecast
The operating profit for the quarter, including the impact of Credit Suisse, is expected to be $33.73 billion according to the company’s consensus. Unfortunately, no pro-forma comparable results are available at this time.
Net Profit
Net profit, which incorporates the results from Credit Suisse, is anticipated to be $33.45 billion according to the company’s consensus. Unfortunately, no pro-forma comparable results are available at this time.
What to Watch For
Stay tuned to UBS Group’s second-quarter results for insights into the future direction of the recently-acquired Credit Suisse.
UBS to Retain Credit Suisse’s Domestic Bank
UBS, the multinational investment bank, is expected to confirm that it will retain Credit Suisse’s domestic bank, according to informed sources. This news aligns with recent reports from Bloomberg. Analysts from Citi believe that this decision would be the best outcome for UBS shareholders, as the Swiss business of Credit Suisse is considered the crown jewel of the acquisition.
The Importance of Credit Suisse’s Swiss Business
Describing Credit Suisse’s domestic bank as a highly profitable business, the analysts believe that its retention would allow UBS to achieve a similar scale as the local cantonal banks. This move would position UBS favorably in the market and contribute significantly to its future growth.
Assessing Credit Suisse’s Contribution to the Group
The upcoming results announcement on Thursday will shed light on Credit Suisse’s anticipated contribution to the combined entity. UBS is expected to provide specific details regarding potential revenue attrition across various business areas. Additionally, they will outline the costs associated with restructuring and provide a timeline for its implementation.
Overall, the market eagerly awaits these updates, as they will provide valuable insights into the future prospects of the combined UBS and Credit Suisse entity.
Consequences of Swiss Government Agreement Termination
According to these analysts, the termination of these agreements could potentially limit the expected losses from the acquired assets to a value well below the CHF5 billion mark. This development brings about reassurance with regards to liquidity and funding at UBS and Credit Suisse, as noted by Jefferies analysts.
For more information: Cecilia Butini
