UBS' Credit Suisse Subsidiary Sees Loss Of $1.6B From Reclassifying Loans: The Details
Portfolio Pulse from Lekha Gupta
UBS Group AG's subsidiary Credit Suisse reported a significant increase in 6M FY23 revenue to CHF17.1 billion, up from CHF8.13 billion a year ago. However, the company expects a loss of $1.6 billion from reclassifying loans related to its non-core and legacy businesses. Additionally, Credit Suisse witnessed net asset outflows of CHF100.3 billion in the period. UBS shares are trading higher by 1.13% at $24.98 premarket.
September 29, 2023 | 12:59 pm
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UBS's subsidiary Credit Suisse reported a significant increase in revenue but expects a large loss from loan reclassification. UBS shares are trading higher.
The news is a mixed bag for UBS. On one hand, Credit Suisse's significant revenue increase is positive. On the other hand, the expected loss from loan reclassification is a negative factor. The net asset outflows at Credit Suisse could also be concerning. However, the market seems to be reacting positively in the short term, with UBS shares trading higher.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100