UBS Posts Bigger-Than-Expected Q3 Net Loss Amid Credit Suisse Integration, Promises Future Profitability with Solid Client Inflows and Cost Savings

UBS records a net loss of $785 million in Q3 due to Credit Suisse integration, despite a significant $22 billion inflow to its wealth management arm and expected $10 billion in savings by 2026; CEO remains optimistic.

UBS Group recorded a net loss for Q3 of $785 million due to costs associated with integrating Credit Suisse, exceeding analyst expectations for a loss of $444 million. The company’s costs related to the integration came to $2 billion.
Despite the loss, UBS was still able to attract new clients, with $22 billion of net new money flowing into its global wealth management business, which includes funds from the wealth management unit of Credit Suisse that turned positive for the first time in 18 months.
UBS was able to reduce its combined workforce by about 13,000 compared to its size at the end of 2022, as it pushes to achieve a $10 billion cost-saving target by the end of 2026.
CEO Sergio Ermotti remains upbeat on UBS’s future, projecting future profitability despite the recent loss, attributing the bank’s recent setbacks to the Credit Suisse integration, but striking an optimistic tone about the bank's future profitability and stability.
UBS plans to continue operating the two banks separately until a planned legal merger next year, maintaining the Credit Suisse brand until the completion of all client migration to its system, estimated for 2025.