UBS shares jump after quarterly figures
Published: Tuesday, Nov 7th 2023, 09:52
Updated At: Wednesday, Nov 8th 2023, 00:53
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UBS shares started trading on Tuesday with a jump. The major bank published its quarterly figures in pre-market trading and performed better than expected at pre-tax level.
However, analysts are mostly impressed by the rapid progress following the takeover of CS. UBS shares gain 4.6 percent to 22.89 francs at 9.25 a.m., the high for the day is even a tick higher at 22.90 francs. Meanwhile, the market as a whole shows only a slight gain (+0.3%).
The fact that the Group loss is larger than expected does not play a major role for analysts. The focus is primarily on the operating and adjusted figures and the development following the takeover of CS.
The integration is progressing faster than expected and the adjusted figures are also better than predicted, according to ZKB, for example. UBS has been able to clearly stabilize the situation at Credit Suisse and has also returned to the green zone earlier than he had expected, says the analyst responsible.
Significant progress since completion of the CS takeover
Vontobel is also impressed by the UBS figures. The bank has made significant progress since the transaction was completed, they say. In particular, the improvement in (deposit) inflows in September is mentioned. However, the responsible analyst also emphasizes that the management of UBS still faces a huge task. In this context, he mentions, for example, the retention of clients and key employees, the far-reaching restructuring and cost reductions, the IT migration, the legacy burdens and the reduction of the non-core business.
Analysts from foreign banks are also impressed. A commentary by Deutsche Bank speaks of "another good quarter". The figures and today's news on cost reduction, for example, which is progressing faster than planned, should boost investors' confidence that UBS will be able to successfully integrate CS.
The Royal Bank of Canada takes a similar view. The analyst there also mentions the rapid reduction in costs. Headwinds in the short term will come at most from economic uncertainties and seasonality.
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