UBS to chop 3,000 jobs in Switzerland regardless of large income from takeover of Credit Suisse

Swiss banking large UBS has reported a report pre-tax revenue of $29bn (£22.8bn) within the newest quarter following its takeover of Credit Suisse.

The Zurich-based financial institution stated its bumper earnings within the three months to June have been largely right down to the belongings it acquired from its collapsed rival, which it purchased for a reduced worth of $3.2bn (£2.5bn) earlier this yr.

UBS confirmed it might absolutely take up Credit Suisse’s home financial institution and stated full integration of the 2 was the “best outcome for UBS, our stakeholders and the Swiss economy”.

But it additionally warned 3,000 job losses have been deliberate in Switzerland over the following few years on account of the merger because it seeks to chop prices by $10bn (£7.9bn).

CEO Sergio Ermotti advised employees in a memo: “The vast majority of cost reductions will come from natural attrition, retirements and internal mobility”.

But he added that redundancies would start in late 2024 as a part of strikes to restructure and combine Credit Suisse.

UBS and Credit Suisse mixed make use of round 120,000 employees worldwide.

While UBS employs about 6,200 folks within the UK with places of work in cities together with London, Birmingham and Manchester, and Credit Suisse had about 5,500 folks based mostly within the UK previous to the merger.

Excluding the extra belongings, and the merger-related prices, UBS’s pre-tax revenue was $1.1bn (£0.87bn) for the interval.

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In a separate assertion, Credit Suisse, which described itself as a UBS subsidiary following the completion of the takeover in June, introduced a lack of $10.6bn (£8.3bn) because it wrapped up its accounting for all of 2023.

UBS’s shares soared by greater than 5% throughout early buying and selling following publication of the outcomes on Thursday morning, hitting highs not seen since 2008.

Mr Ermotti stated in an announcement: “We are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history.

“We are profitable again the belief of shoppers, decreasing prices and taking the mandatory actions to create economies of scale that can enable us to higher focus our sources and goal investments for future development.

“This combination will reinforce our status as a premier global franchise – and one that our home market, Switzerland, can be proud of. We are humbled by this task and the responsibility entrusted to us.”

When requested about potential job losses within the UK, UBS advised Sky News it might not remark additional past what Mr Ermotti had stated.