UBS posted a Q3 net loss of US$785 million, larger than expected, due to the integration of Credit Suisse. Despite initial concerns, UBS has stabilized the situation and reported profitability in the first full quarter since the acquisition. Integration expenses were US$2 billion, and a significant portion of new deposits came from Credit Suisse.
A Singapore court mandated Credit Suisse’s unit to compensate Georgian billionaire and former Prime Minister Bidzina Ivanishvili US$743 million for not securing his assets. Previously, the court had ruled a payment of US$926 million.
Ivanishvili had blamed the bank for fraudulent mismanagement leading to his investment losses. This lawsuit adds to Credit Suisse’s woes, which was overtaken by UBS amid scandals.
UBS’s US$3.25 billion takeover of Credit Suisse, initially seen as a risky move, has proven lucrative with UBS reporting a substantial profit. Critics argue that the deal favored UBS and created a monopoly, while others seek fair compensation for Credit Suisse shareholders.
The long-term success of the merger remains uncertain as restructuring challenges lie ahead.