UBS reported a quarterly loss for the first time since 2017 – Kommersant
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Swiss UBS Group completed the third quarter of the year with a net loss of $795 million, follows from financial report banking group. This is the first time in nearly six years that UBS has failed to maintain business profitability.
The unprofitability in the third quarter is primarily due to the ongoing integration of the Credit Suisse business, acquired by UBS in March of this year. Costs associated with this process amounted to approximately $2 billion. UBS’s underlying operating profit before taxes was $844 million. However, the size of the banking group’s net loss was still worse than expected by analysts polled by Reuters. They predicted that this figure would be $444 million.
According to UBS CEO Sergio Ermotti, the company is going through a difficult phase of carrying out the largest acquisition in the banking sector in decades. The company will have to cut costs by $10 billion, maintaining the profitable divisions of Credit Suisse and getting rid of everything that could pose risks to the well-being of UBS Group. A detailed business development plan will be presented in February 2024 along with the presentation of the annual report.
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