UBSG: UBS Sinks into $785M Quarterly Net Loss as Credit Suisse Takeover Costs Bite

The megabank’s slump away from profits was the first such instance in six years. The stock gained 4% at the opening bell for European trading.

• UBS UBSG reported its third-quarter financial data, experiencing its first net loss in six years. The Swiss banking giant got knocked by a $785mn net loss as costs of dealing with the Credit Suisse takeover had begun to bite. The stock gained 4% in the first minutes of European trading Tuesday.
• Analysts had expected a net loss of $444mn, a quarter after the wealth manager posted an industry-first whopping profit of $29bn. The tiny loss, in comparison, was a result of $2bn in expenses over the merger with its fallen rival. UBS did record $844mn in operating pre-tax profits.
• On the bright side, UBS collected $22bn in net new inflows for its white-glove wealth management business and $33bn across all products. “We are optimistic about our future,” CEO Sergio Ermotti said, adding that UBS’s role is to stabilize the financial system and to make its stakeholders proud.