UBS Group announced on Thursday that it has decided to retain Credit Suisse's domestic bank, following its acquisition of the struggling competitor. The Swiss lender reported a net profit of $28.88 billion for the second quarter, slightly below consensus expectations of $33.45 billion.
According to Chief Executive Sergio P. Ermotti, the decision to keep Credit Suisse's domestic bank is in the best interest of UBS and the Swiss economy. Analysts also anticipated this outcome and believe it will benefit shareholders.
UBS highlighted that the Credit Suisse franchise has shown signs of stability, with net deposit inflows totaling $18 billion in the second quarter. The bank is optimistic that this momentum will carry forward into the third quarter.
In terms of financials, UBS reported revenue of $9.54 billion and negative goodwill of $28.93 billion. The company's operating profit for the quarter amounted to $29.24 billion, falling slightly short of consensus expectations of $33.73 billion.
Overall, UBS's acquisition of Credit Suisse's domestic bank marks a significant milestone for both institutions. Going forward, UBS aims to leverage this strategic move to strengthen its position in the market and deliver value to its shareholders.