UBS Reports Q2 Financials, with Net Profit of USD 29Bn

UBS has on Thursday published its financial results for the second quarter of 2023, unveiling solid performance for this period.

Key highlights

• 2Q23 net profit of USD 29bn including USD 29bn of negative goodwill from Credit Suisse acquisition to sustain USD 238bn assumed RWA; underlying PBT of USD 1.1bn, of which USD 2.0bn from the UBS sub-group

• Strong capital position maintained with CET1 capital ratio of 14.4% and CET1 leverage ratio of 4.8%

• Credit Suisse (Schweiz) AG to be fully integrated following a thorough evaluation focused on creating lasting value for all stakeholders; closing of legal entity merger expected in 2024

• Credit Suisse AG reports a 2Q23 US GAAP pre-tax loss of CHF 8.9bn; CHF 4.3bn excluding acquisition-related effects; adjusted pre-tax loss of CHF 2.1bn

• Credit Suisse franchise broadly stabilized with net deposit inflows of USD 18bn in 2Q23, momentum continuing into 3Q23

• UBS Global Wealth Management recorded highest second-quarter net new money in over a decade at USD 16bn, momentum continuing into 3Q23

• Non-core and Legacy perimeter defined with clear plans to substantially reduce capital consumption by year-end 2026 with USD 8bn in RWAs exited in 2Q23

"Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history. We are winning back the trust of clients, reducing costs and taking the necessary actions to create economies of scale that will allow us to better focus our resources and target investments for future growth. This combination will reinforce our status as a premier global franchise – and one that our home market, Switzerland, can be proud of," said Sergio P. Ermotti, Group CEO.