UBS Valuation Surges Past $100 Billion One Year After Credit Suisse Takeover
Mar 19, 2024
A year since UBS Group AG’s takeover of former rival Credit Suisse, it’s becoming clear just how advantageous the deal has been for the bank. It has pushed its market capitalization past $100 billion to the highest level in almost 16 years and cemented its leading role in global wealth management. Bloomberg's Samuel Etienne reports.
Who would have expected UBS shares to have soared since the bank took over its ailing
Swiss rival Credit Suisse one year ago?
Yet that's exactly what's happened, with the stock hitting a 16-year high in early March.
Behind this, confidence in chief executive Sergio Amati's turnaround of the Swiss lender
and integration of the two banks.
I think it's very important for investors to understand how we are connecting the dots
between what we said in summer last year and in respect of our long-term plans.
Amati's goal is simple, to make UBS the undisputed global wealth champion and take on Wall Street
rivals where they have the home advantage.
In the U.S., UBS chief hopes to leverage former Credit Suisse clients in the U.S. and manage
their wealth, including those still building their fortunes.
Catching up with these American financial giants will take time and come at a cost.
More than 50% of our cost is at count and there are duplications, but we try to do it
over time.
European banks, including Deutsche Bank and HSBC and even UBS, have previously tried to
crack the U.S. market and had to pull back.
But this time, UBS aims to be the one left standing at the end of this round.