(News Bulletin 247) – UBS shares climbed nearly 5% on Thursday morning to reach new highs in eight years after much better than expected quarterly results.

These second quarter results, which now include the activities of Credit Suisse, notably show a net profit before tax of 29 billion dollars.

The banking group specifies that this figure includes $28.9 billion in negative goodwill and $830 million in acquisition and integration costs.

Excluding goodwill, but also integration-related expenses and acquisition costs, its pre-tax profit was $1.1 billion.

UBS says it has maintained its financial strength with a ‘CET1’ return on equity of 14.4%, where the consensus was only targeting 14.1%.

‘UBS seems to be advancing rapidly in the integration process and in realizing the benefits of the merger compared to the objectives it had initially set itself’, RBC analysts reacted this morning.

While Credit Suisse SA posted a pre-tax loss of 8.9 billion Swiss francs in the second quarter within the meaning of US GAAP standards, its client base stabilized thanks to net deposit inflows of 18 billion dollars.

“Two and a half months after the acquisition of Credit Suisse, we are working hard to implement one of the largest and most complex banking mergers in history,” said Sergio P. Ermotti, CEO of UBS.

“We are focused on regaining customer trust, reducing costs and taking steps to achieve economies of scale,” he said.

After an in-depth assessment, the group has thus decided to opt for a complete integration of Credit Suisse (Suisse) SA, with an end to the legal merger of the entities scheduled for 2024.

“Clearly, the group remains under construction on a short-term horizon, but we believe that these results and these announcements should strengthen the market’s confidence in the file over the medium term”, say analysts at Deutsche Bank, buying on the title.

“The fact that the group plans to take stock of share buybacks on the occasion of the publication of its 2023 annual results also suggests that these share buybacks could resume faster than expected”, adds for its part. RBC.

After having climbed 7% at the very beginning of the session, the title showed a gain of around 5% around 9:45 a.m.

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