UBS sees itself on track with CS integration
Published: Wednesday, Oct 30th 2024, 08:20
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UBS believes it is well on track with the integration of Credit Suisse. During the migration of CS clients to the UBS platforms, the big bank transferred all client accounts managed in Luxembourg and Hong Kong in October.
The ongoing transfers in Japan and Singapore are now to be completed by the end of the year, as announced on Wednesday on the occasion of the presentation of its quarterly results. This will allow the bank to begin transferring CS client accounts in Switzerland in the next phase in the second quarter of 2025.
Reduction in NCL processing unit
The bank has stepped up its pace, particularly in the Non-Core and Legacy (NCL) run-off unit. In the third quarter, it reduced risk-weighted assets (RWA) there by a further 5 billion dollars, it writes. It is now one year ahead of schedule in closing the active books in the division.
However, due to valuation adjustments to common equity tier 1 capital, the common equity tier 1 capital ratio fell to 14.3% at the end of the third quarter after 14.9% in the second quarter.
The implementation of the final Basel III standards at the beginning of 2025 will also have an impact on the capital position. However, the bank assumes that the common equity tier 1 ratio will remain at around 14% even after implementation.
Further share buybacks possible
UBS intends to complete its planned share buybacks of 1 billion dollars in the full year 2024 in the current quarter. The bank emphasizes that it "remains committed" to continuing the share buybacks in 2025 and making higher capital repayments in 2026 than before the takeover.
However, further capital reductions are likely to depend on the regulation of the big banks in Switzerland: Efforts for the years after 2025 would depend on the assessment of "any proposed requirements" arising from the ongoing review of Swiss capital regulations, it said.
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