UBS: Quick Execution of Credit Suisse Integration, Stabilisation of Core Franchise

DBRS Morningstar has released a commentary on UBS Group AG (UBS or the Group). Key highlights include:

• UBS reported USD 0.8 billion underlying profit before tax (PBT) in Q3 2023, improved from an estimated USD -0.6 billion underlying loss before tax in Q2 2023.

• The positive net new money/deposits from Credit Suisse Wealth Management and the Swiss bank reported in Q3 is a sign the core franchise has stabilised.

• Looking ahead, we note that the revenue outlook is more uncertain due to net interest income headwinds and the impact of the recent geopolitical developments in the Middle East on transaction activity.

“UBS has been quick in executing the integration of Credit Suisse while delivering on its guidance, and this should continue to support market confidence.” said Vitaline Yeterian, Senior Vice President, Global Financial Institutions at DBRS Morningstar. “We expect more information on the outlook for P&L items of the combined entity when a full strategic update with a three-year plan is communicated in February 2024.”