UBS posts record quarterly profit in Q2 2023

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UBS delivered a record bottom line in its second quarter of this year as a result of its emergency takeover of Credit Suisse, posting strong net new money inflows worth $16 billion.

The Swiss bank announced recording pre-tax profits of $29 billion in the three months ended in June, higher than expectations of $12.8 billion.

The financial results mainly reflected $28.9bn in negative goodwill from the Credit Suisse acquisition — which recognizes the extra amount it paid over the fair value of the assets.

Credit Suisse officially became part of UBS in June. The bank’s Q2 2023 results included Credit Suisse as of June 1, with the latter quarterly loss alone amounting to $10.6 billion.

In a statement, CEO Sergio Ermotti said UBS is regaining customer confidence, reducing costs, and taking the necessary measures for better focusing its resources and direct investments to achieve future growth.

UBS would retain the large local arm of Credit Suisse in Switzerland instead of separating it, the bank stated.