The Swiss bank “UBS” expressed its hope to complete the acquisition of its competitor “Credit Suisse” at the end of June, stressing that the merger represents “a unique opportunity to create value.”
Switzerland’s largest bank said it made a net profit of $1 billion, well below expectations of $1.7 billion, but reported “significant capital inflows” over the same period, indicating customer confidence, according to the quarterly results statement.
The new managing director of the bank, Sergio Ermotti, returning to the position he previously held to lead the acquisition of “Credit Suisse”, confirmed that he is “convinced that this transaction will contribute to strengthening the leading position of the Swiss financial center, and will benefit the entire economy,” according to the statement.
On March 19, UBS agreed to buy its competitor, Credit Suisse, under pressure from the authorities, in a deal amounting to three billion Swiss francs (3.02 billion euros), with financial guarantees from the federal government and the central bank.
The deal saved Switzerland’s second-largest bank from bankruptcy, which would have caused “irreparable economic damage”, and “therefore, Switzerland must carry out its responsibilities beyond its borders”, as Swiss Finance Minister Karin Keller-Sutter warned.
The banking sector has been under great pressure since the major central banks raised interest rates in an attempt to control inflation, and several institutions failed to prepare for the current risks, after years of benefiting from low-interest financing.
