UBS Outlook: Swift Credit Suisse Closing Would Support Confidence Further

DBRS Morningstar has released a commentary on UBS Group AG (UBS or the Group).

Key highlights include:

• Net new money inflows across regions in Global Wealth Management demonstrated that the Group can maintain positive business momentum in a complex environment.

• There are high execution risks on the horizon, however, UBS has a comfortable capital cushion to execute on its planned acquisition of Credit Suisse (CS).

• Consolidated financial statements for the combined UBS-CS entity, perimeter of non-core, expected risk-weighted assets and capital treatment will be provided as part of UBS’ quarterly earnings post-closing, which would be Q2 2023 earnings if the closing occurs in Q2 2023.

• UBS reported solid underlying Q1 2023 results.

“We will continue to monitor net new money flows over the coming quarters to the extent UBS communicates this information,” said Vitaline Yeterian, Senior Vice President, Global Financial Institutions at DBRS Morningstar. “We consider it remains important for UBS to quickly close its planned acquisition of Credit Suisse to continue to maintain a strong level of investor confidence in UBS.”