Banks UBS considers itself well on track with CS integration

SDA

4.2.2025 - 06:42

UBS aims to essentially complete the integration of CS by the end of 2026. (archive picture)
UBS aims to essentially complete the integration of CS by the end of 2026. (archive picture)
Keystone

The major bank UBS believes it is on track with the integration of Credit Suisse. All important milestones have been reached and the targeted cost savings have also been achieved, UBS announced on Tuesday at the presentation of its annual results.

Keystone-SDA

UBS has realized cost savings of USD 3.4 billion in the current year 2024. The savings compared to the cost base of the two big banks in 2022 thus amount to USD 7.5 billion, as targeted. This means that almost 60 percent of the planned cost reduction has been achieved.

Transfer of CS customers

As announced, the transfer of accounts of CS wealth management clients has also been completed at the booking centers in Hong Kong, Singapore, Japan and Luxembourg. This means that around 90 percent of client accounts outside Switzerland have now been transferred to the UBS platforms.

According to UBS, the wind-down of the Non-Core and Legacy (NCL) settlement unit is progressing even faster than planned. In the fourth quarter, UBS reduced risk-weighted assets (RWA) in the unit by USD 3 billion to USD 41 billion. The reduction in the entire 2024 financial year amounted to USD 33 billion.

UBS is now "increasingly confident" that the integration will be substantially completed by the end of 2026. The transfer of "most client accounts" in Switzerland and all asset management portfolios is expected to be completed in 2025. This will release "significant cost savings", the big bank promises.

Targets confirmed

The cost savings for 2025 are expected to be around 2.5 billion dollars. Overall, the bank believes it is on track to achieve gross cost savings of around 13 billion dollars by the end of 2026, with integration-related expenses totaling around 14 billion dollars.

The bank has reaffirmed its financial targets: it is aiming for a return on core capital (RoCET1) of around 15 percent by the end of 2026 on an underlying basis. The cost/income ratio should then be "below 70 percent". UBS then aims to achieve a RoCET1 of around 18 percent in 2028.