UBS to cut $10bn in costs following Credit Suisse deal

Part of this process see the business – which reported a $29.3bn profits between April and June in what was the first set of results since it bought its struggling rival – will see it cut around 3,000 jobs.  

As part of its announcement, UBS has also confirmed it intends to fully absorb Credit Suisse’s domestic bank operation – rather than spinning it off as a separate entity. This will see it integrated as planned next year, however Credit Suisse’s brand and operations will remain in place until it completes the migration of clients onto UBS’s system – which is expected to be completed in 2025.  

UBS Group’s chief executive Sergio Ermotti said: “Our decision on Credit Suisse (Schweiz) AG follows a thorough evaluation of all available options.  

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

“Our stronger capital base will enable us to keep the combined lending exposures unchanged, while maintaining our risk discipline. Aware of the important role both firms play in our communities, we will maintain all agreed sponsorship of civic, sporting and cultural activities in Switzerland at least until the end of 2025.” 

Credit Suisse was acquired by UBS back in March after the troubled Swiss banking giant said would have to borrow up to 50bn francs from the Swiss central bank following a series of scandals and setbacks. The discussions were initiated jointly by the Swiss Federal Department of Finance, FINMA and the Swiss National Bank.