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UBS Returns To Profitability After Credit Suisse Acquisition, Profit Tops $1.1 Billion

by THEFUTURE.TEAM

August 14, 2024

Swiss bank UBS reported a net profit of $1.14 billion for the second quarter on Wednesday, beating analysts’ forecasts as it enters a new phase of integration with former rival Credit Suisse, Reuters reported.

KEY FACTS

The net profit distributable to shareholders compared with the $528 million forecast of analysts in a survey provided by the bank. These are the lender’s first results since UBS formally completed its merger with Credit Suisse in May.
UBS said it achieved a further $900m in savings, reaching around 45% of its ambitions for total annual gross savings.
The bank reduced non-core and legacy risk-weighted assets by 42% from the second quarter of last year, including by $8 billion quarterly, the bank added.
UBS acquired its longtime rival last year in a rescue that was orchestrated by Swiss authorities when Credit Suisse collapsed after a series of financial setbacks and scandals.

IMPORTANT QUOTE

“The first half results reflect the bank’s significant progress following the completion of the acquisition. We are well-positioned to meet our financial targets and return to the profitability levels we achieved before we were asked to step in and stabilize Credit Suisse. We are now entering the next phase of our integration, which will be critical to realize further significant cost, capital, financing and tax benefits,” said UBS CEO Sergio Ermotti.

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WHAT TO WATCH FOR

UBS said the macroeconomic outlook is clouded by ongoing conflicts, geopolitical tensions and the upcoming US election. They are expected to lead to higher market volatility than in the first half of the year.

The bank said it expects to record costs in the third quarter of about $1.1 billion related to the integration, and that the pace of gross savings will slow modestly thereafter. Integration-related costs should be partially offset by approximately $0.6 billion of accrual of accounting effects from acquisitions.

UBS reported a profit of almost $29 billion in the second quarter of last year due to a huge one-off effect reflecting how acquisition costs were far below Credit Suisse’s value.

UBS then reported two consecutive quarters of losses due to the costs of its rival’s takeover.

Analysts are closely watching UBS’s takeover of Credit Suisse, and Ermotti said in May that any delay in the two banks’ technology integration could undermine planned cost savings.

Markets are also watching Swiss authorities move forward with plans to tighten banking regulation as they seek to ensure there is no repeat of the Credit Suisse collapse.

The Swiss government in April unveiled a set of so-called “too big to fail” proposals, outlining how UBS would need to hold additional capital to protect against future mishaps.

Although the Swiss finance minister suggested the amount could be between $15 billion and $25 billion, it remains unclear exactly how much it will be, and UBS noted “serious” concerns about increased capital requirements.

The Future Forbes Realty Global Properties

Cyprus Emerges As A Leading Household Consumer In The European Union

by THEFUTURE.TEAM

June 30, 2025

Overview Of Eurostat Findings

A recent Eurostat survey, which adjusts real consumption per capita using purchasing power standards (PPS), has positioned Cyprus among the highest household consumers in the European Union. In 2024, Cyprus recorded a per capita expenditure of 21,879 PPS, a figure that underscores the country’s robust material well-being relative to other member states.

Comparative Consumption Analysis

Luxembourg claimed the top spot with an impressive 28,731 PPS per inhabitant. Trailing closely were Ireland (23,534 PPS), Belgium (23,437 PPS), Germany (23,333 PPS), Austria (23,094 PPS), the Netherlands (22,805 PPS), Denmark (22,078 PPS), and Italy (21,986 PPS), with Cyprus rounding out this elite group at 21,879 PPS. These figures not only highlight the high expenditure across these nations but also reflect differences in purchasing power and living standards across the region.

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Contrasting Trends In Household Spending

The survey also shed light on countries with lower household spending levels. Hungary and Bulgaria reported the smallest average expenditures, at 14,621 PPS and 15,025 PPS respectively. Meanwhile, Greece and Portugal recorded 18,752 PPS and 19,328 PPS, respectively. Noteworthy figures from France (20,462 PPS), Finland (20,158 PPS), Lithuania (19,261 PPS), Malta (19,622 PPS), Slovenia (18,269 PPS), Slovakia (17,233 PPS), Latvia (16,461 PPS), Estonia (16,209 PPS), and the Czech Republic (16,757 PPS) further illustrate the disparate economic landscapes within the EU. Spain’s figure, however, was an outlier at 10,899 PPS, suggesting the need for further data clarification.

Growth Trends And Economic Implications

Eurostat’s longitudinal analysis from 2019 to 2024 revealed that Croatia, Bulgaria, and Romania experienced the fastest annual increases in real consumer spending, each growing by at least 3.8%. In contrast, five member states, with the Czech Republic experiencing the largest drop at an average annual decline of 1.3%, indicate a varied economic recovery narrative across the continent.

This comprehensive survey not only provides valuable insights into current household consumption patterns but also offers a robust framework for policymakers and business leaders to understand economic shifts across the EU. Such data is integral for strategic decision-making in markets that are increasingly defined by evolving consumer behavior and regional economic resilience.