UBS Makes Record Profit Due to Credit Suisse Influence

UBS Group AG reported the biggest-ever quarterly profit by a bank in the second quarter as a result of its emergency takeover of Credit Suisse. The bank said it will fully integrate its former rival’s local business as of next year. UBS Group AG reported the biggest-ever quarterly profit by a bank in the second quarter. The $29 billion net profit was the result of an accounting difference between the $3.8 billion price UBS paid for Credit Suisse and the value of the acquired bank’s balance sheet. UBS, which now has about $5 trillion in client assets, has solidified its position as a global wealth management powerhouse. The Zurich-based bank reported on Thursday that UBS-Credit Suisse’s first jointly reported quarterly pretax net profit was $1.1 billion. The balance sheet included a target of more than $10 billion in cost savings by the end of 2026. UBS saw net new inflows of $16 billion in the quarter. Outflows from Credit Suisse eased to 39 billion Swiss francs ($44.4 billion). The bank sees a recovery in client activity and expects new asset inflows to continue