UBS has recorded a $785 million loss in the third quarter following its acquisition of failed rival bank Credit Suisse earlier this year.

It blamed pre-tax profit losses of £255 million on expenses related to the integration of Credit Suisse, which neared collapse in March after a series of scandals and the discovery of “material weaknesses” in its financial reporting.

Since the takeover of Credit Suisse, the bank has cut 13,000 jobs as part of a cost-saving exercise.

In August, reports announced plans for a cull of around 3,000 people to drive down costs of more than $10 billion.

A cull of around 3,000 people first revealed in August was reportedly launched to drive down costs by more than $10 billion.

“We are executing on the integration of Credit Suisse at pace and have delivered underlying profitability for the Group in the first full quarter since the acquisition,” said Sergio P. Ermotti, group chief executive, UBS. “Our clients have continued to place their trust and confidence in us, contributing to strong inflows across wealth management and our Swiss franchise."

While the chief executive assured stakeholders that the organisation is optimistic about the future, the bank said that the outlook for economic growth, asset valuations and market volatility remain "difficult to predict".

UBS added that ongoing geopolitical tensions including the conflicts in the Middle East and Ukraine continue to "cloud the macroeconomic outlook".

It warned that in addition to normal seasonality, these conflicts may impact wealth management and institutional clients' transactional activity in the fourth quarter of the year.

Share Story: