UBS is soberly aware of the task it faces to integrate Credit Suisse into its operations. Nevertheless, it sees long-term value in the deal it was forced into on March 19.
Last month, the Swiss Federal Government along with the Swiss National Bank and the financial regulator Finma, forced UBS into a marriage with Credit Suisse. Combining the operations of two globally systemically important banks will be a herculean undertaking, and UBS realizes what awaits it, but also sees a positive side.
«While acknowledging the magnitude of, and complexity associated with, the integration and restructuring of Credit Suisse, we believe that this combination presents a unique opportunity to bring significant, long-term value to all of our stakeholders,» UBS said in a statement Tuesday announcing its first-quarter results.
Truly Global Wealth Manager
UBS said the combined entities will «strengthen our position as a leading and truly global wealth manager, with around $5 trillion in invested assets. It also plans to reinforce its position as a leading universal bank in Switzerland and to enhance investment banking where possible. Credit Suisse's investment bank has been a trouble spot for many years, which is something UBS is keenly aware of.
«We intend to actively reduce the risk and resource consumption of Credit Suisse's investment banking business,» UBS said. The investment bank of the new UBS/Credit Suisse will be about 25 percent of the Group's risk-weighted assets (RWA), which don't include non-core assets and liabilities.
UBS said little else in its report about the merger with Credit Suisse. Investors will no doubt be aiming questions at the UBS media event later this morning.
