UBS Surpasses Projections with $1.1 Billion Q2 Profit After Credit Suisse Merger

Swiss banking giant UBS reported a net profit of $1.14 billion for the April-June period, significantly surpassing analysts' forecasts of $528 million. The robust performance is attributed to the bank's investment bank and non-core and legacy division, as well as the integration of Credit Suisse following its formal merger in May. UBS achieved $0.9 billion in additional gross cost savings, reaching approximately 45% of its cumulative annualized gross cost-saving ambitions. The bank's revenues for the quarter reached $11.9 billion, also exceeding expectations.

UBS's global wealth management unit experienced a 15% rise in revenue, largely driven by the Credit Suisse merger, while its investment bank unit saw a 38% increase. Despite these gains, UBS faces uncertainty around capital return due to ongoing conflicts, geopolitical tensions, and the upcoming U.S. elections. The bank expects to incur around $1 billion in integration-related expenses in the third quarter of 2024, with these costs anticipated to decline modestly over time. UBS also aims to achieve total cumulative savings of $7 billion by the end of 2024, with a long-term target of $13 billion by 2026.