Swiss banking giant UBS has completed its takeover of Credit Suisse, thereby putting an end to the struggling lender which no longer exists.
On Friday, UBS revealed it had reached a “significant milestone” in the integration of the two firms. Last year in March, the ailing Credit Suisse was bought out by its Swiss rival in a rescue deal valued at $3.25billion (£2.6billion). In an attempt to reinvent itself, the beleaguered bank saw its stock price plummet in just a matter of days.
The bank’s health had been declining over a span of years and recorded huge losses in the run-up to its fall. Factors contributing to this included instability in the financial markets and a rush of customers withdrawing their capital.
This was set against the backdrop of a spate of fraud and malpractice scandals. Post-takeover, UBS has taken strides to significantly reduce the size of Credit Suisse’s investment bank, once described as having “cultural issues”.
Since becoming owners, UBS has embarked on an aggressive cost-saving drive, upping its savings target earlier this year to $13 billion (£10.2billion) by the end of 2026. Ulrich Korner, ex-chief of Credit Suisse, is set to step back from the recently merged business later in the year.
Sergio Ermotti, UBS’s chief executive, recognised the merger as “critical to facilitating the migration of clients onto UBS platforms”. While the former clients of the now-collapsed Credit Suisse have seamlessly transitioned into UBS customers, some will continue to use Credit Suisse platforms for their interactions with UBS in the interim.
In the meantime, the amalgamation of the two Swiss divisions is still underway and is anticipated to be finalised between July and September.
