UBS has said that progress in its Credit Suisse integration has driven USD$1.5 billion in pre-tax profits in the second quarter.

The figures come after the bank announced in early July that it had successfully completed the merger between its domestic unit, UBS Switzerland AG, and Credit Suisse's Swiss operations, Credit Suisse (Schweiz) AG.

The merger marked a crucial step in the integration process following UBS's acquisition of Credit Suisse last year.

UBS also attributed its strong performance during a “complex market environment” to “continued client momentum” over the quarter.

UBS last year completed its more than $3 billion takeover of Credit Suisse to create a finance giant with a balance sheet of $1.6 trillion in the biggest banking deal since the 2008 financial crisis.

The takeover, in which Swiss National Bank (SNB) reportedly also provided UBS with a $100 billion line of liquidity, was facilitated by the Swiss Confederation and Switzerland’s central bank after Credit Suisse’s near-collapse in March 2023 after a series of scandals and the discovery of “material weaknesses” in its financial reporting.

Commenting on its latest financials, UBS group chief executive Sergio P.Ermotti said: “Our first-half results reflect the significant progress we have made since the closing of the acquisition as we deliver on all of our commitments to stakeholders. We are well positioned to meet our financial targets and return to the levels of profitability we delivered before being asked to step in and stabilise Credit Suisse."

He went on to say that the bank is now entering the next phase of its integration, which will be "critical to realise further substantial cost, capital, funding and tax benefits."

The results are a welcome improvement for UBS after it recorded a $785 million loss in the third quarter of 2023 following its acquisition of Credit Suisse.

The bank blamed pre-tax profit losses of £255 million on expenses related to the integration of Credit Suisse.

In July, Switzerland’s pricing supervisor said it had placed UBS under observation following the completion of its merger with Credit Suisse.

Swiss regulator FINMA and competition authority ComCo met with the supervisor and the Swiss National Bank to discuss the takeover and any possible fallout, and have confirmed they had drawn up guidelines to enable them to work together in the future.

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