For the first time, UBS has indicated how much it is gaining by acquiring Credit Suisse. At least on paper.
An overnight filing with the US Securities and Exchange Commission (SEC) by UBS shows the bank is expecting its acquisition of Credit Suisse to boost its second-quarter profits by using the combined firms’ «negative goodwill», which was $34.8 billion as of the end of last year. This figure is preliminary and subject to change.
Furthermore, UBS is putting $4 billion aside for litigation, regulatory matters, and related liabilities.
Bargain Takeover
While UBS is able to boost its value by acquiring Credit Suisse for less than it was worth, its overall success will be determined by it being able to integrate Credit Suisse without new risks emerging.
Similarly in the US, First Citizens Bank also reported significant gains after the acquisition of Silicon Valley Bank.
