UBS provisions for legal cases to rise by half in 2023
Published: Thursday, Mar 28th 2024, 10:00
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UBS increased its provisions for legal cases by more than half in the course of 2023. According to the annual report published on Thursday, these amounted to USD 4.02 billion at the end of 2023.
At the beginning of 2023, UBS had reported provisions of 2.59 billion dollars for litigation, regulatory matters and contingent liabilities. Compared to the third quarter, however, the figure has remained unchanged.
After the "emergency takeover" of its smaller rival Credit Suisse in March 2023, UBS began to work through the legal cases accumulated with the CS acquisition at a relatively fast pace.
Last fall, for example, the bank reached an out-of-court settlement with the Republic of Mozambique before the start of the trial in London. In the so-called "tuna bond" scandal, the African state had filed a billion-euro lawsuit against CS.
CS-Altl charges
Prior to this, the bank had reached an agreement with the Swiss Financial Market Supervisory Authority Finma in the Archegos case. The dispute with the Zurich financial center blog "Inside Paradeplatz", which was settled with a settlement, was more of a side issue.
Nevertheless, UBS will still be dealing with the CS legacy issues for some time to come. For example, the dispute with the Georgian billionaire Bidzina Ivanishvili over a fraudulent CS advisor in Geneva has not yet been finally concluded.
At the same time, various lawsuits are being filed in connection with the "ordered" CS takeover. Be it because of the low purchase price or because Credit Suisse's AT1 bonds worth CHF 16 billion were declared worthless.
©Keystone/SDA
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