The management of Swiss bank UBS expects one-time revenue of $34.8 billion after its merger with Credit Suisse (CS). The amount of revenue was affected by the decline in the business reputation of CS, which, among other things, led to a decrease in the value of the bank, reported In a document submitted by UBS to the US Securities and Exchange Commission.
March 19 Financial Times knowledgeableIt was reported that Switzerland’s largest bank UBS agreed to buy Credit Suisse for more than $2 billion, while the UBS administration had to increase the amount of the offer during the negotiations.
“UBS expects a one-time gain of $34.8 billion from the Credit Suisse acquisition because the bank’s bad reputation has devalued the bank. <….> UBS estimates the potential negative financial impact of the transaction at $17 billion. This is due to adjustment in the value of the bank’s assets and debt obligations, possible legal costs, etc.
At the same time, Switzerland’s largest bank considered the total amount of the transaction to cover the transaction-related costs, despite the above factors. According to the expectations of the credit institution management, the agreement should be completed in June this year.