Niklaus Hilti’s Post

On this day, it is exactly one year ago that the Swiss authorities announced that UBS will swallow its longtime rival Credit Suisse (CS). During the 12 month period following 19 March 2023, it has transpired over time how profitable this transaction has been for UBS. Months ago, the renowned Financial Times commented on the relevant figures that the CS take-over "looks like one of the biggest steals in financial history" (see: https://lnkd.in/gcNVXhTg). And today, on the first anniversary of the announcement of the CS takeover by UBS, Bloomberg writes (see the link below): "On the first anniversary of UBS Group AG’s historic takeover of its 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." What has also transpired over time, and has been confirmed recently by UBS's Chairman Colm Kelleher, is how well prepared UBS went into the rescue operation in March 2023. In a recent interview with the leading Swiss newspaper NZZ, Mr. Kelleher explained that UBS started to evaluate a takeover of its rival CS back in July of 2022 already (see: https://lnkd.in/dxNauewr). The events leading up to and on 19 March 2023 are also described in a new publication, written by the renowned Swiss finance journalist Lukas Haessig. In a short book of 44 pages, with the title "The billion dollar coup", Mr. Hässig describes in detail how well prepared UBS went into the negotiations and how successful the outcome of these were for the largest Swiss bank (see: https://lnkd.in/g2WwuS4j). Regarding the hotly disputed write-down of the so-called "AT1" capital instruments he writes, among other things (at page 37; translated into English with Deepl): "A gift, a kind of supplement to the bargain takeover price of CHF 3 billion for the whole of CS. Its headquarters on Paradeplatz and the Savoy Baur en Ville luxury hotel diagonally opposite, which it owned, alone added up to a billion. At least." It will be interesting to see how the Swiss Financial Market Supervisory Authority FINMA and UBS will try to legally justify the position that the AT1 instruments would have had to be wiped out in light of the mentioned circumstances.

🚨 BREAKING NEWS 🚨 In a landmark move to safeguard the global financial system, UBS has agreed to acquire Credit Suisse in a groundbreaking $3bn deal brokered by the Swiss government. The decision comes amidst unprecedented challenges faced by Credit Suisse, with deposit outflows and shareholder concerns threatening its stability. Swiss President Alain Berset emphasized the critical need for a stabilizing solution, stating that the consequences of Credit Suisse's failure would have been "unthinkable." The acquisition, set to conclude by year-end, marks the end of Credit Suisse's 176-year legacy. UBS Chair Colm Kelleher hailed the deal as an "enormous" opportunity, expressing confidence in the merger's success. While some adjustments are expected, both UBS and Credit Suisse remain committed to supporting their staff through this transition. This historic merger between Switzerland's two largest banks reinforces their resilience in the face of adversity and sets a new precedent for collaboration in the financial sector. Stay tuned for more updates as we embark on this transformative journey together. #Finance #UBS #CreditSuisse #GlobalEconomy 🌐💼 https://lnkd.in/en3H-Wwu

In 2023, UBS CEO Sergio Ermotti made a stunning comeback to lead the world's largest bank after it acquired struggling rival Credit Suisse, earning him 14.4 million Swiss francs ($15.9 million). The bank said in late March that Ermotti will take over as CEO for a second time, succeeding Ralph Hamers, who left on April 5 of last year, while UBS handled the enormous work of merging Credit Suisse's operations. The previous term that Ermotti held was from 2011 until 2020. Source - CNBC Follow us for daily updates 👍 #brandsandbusinessmagazine #business #businessnews #magazine #news #internationalnews #newsupdates #finance #economy #news #updates

News of The Day.. #privatemarketetfs #sec #privatelenders #apollo #ssga #privatecreditclo #bloomberg #hsbc #privatecredit #privatedebt #privateequity #navfinancing #cais #mercer #mizuho #golub #lbo #mckinsey #privatelenders #highgradedebt #charlesschwab #waltbettinger #rickwurster #wsj #financialtimes 🌅 Private Lenders Raise Most High-Grade Debt Ever As Risks Rise - https://lnkd.in/etfYBeX3 🥷 Should #privatemarketETFs be available to the public? One former SEC regulator has concerns - https://lnkd.in/e5BBK9Bf 🎏 Mercer Investments' #GreggSommer & CAIS' #NeilBlundell - following the fast river of alts - https://lnkd.in/ePrrYHxx 🤯 Private Credit CLOs Headed for Another Record: Structured Weekly - https://lnkd.in/evP58H3m 〽️ Ten private-markets considerations shaping 2024 so far as per McKinsey & Company - https://lnkd.in/eeufUpCS 🚀 HSBC Asset Management expands private credit capabilities with launch of new strategies - https://lnkd.in/eDvNXteU and https://lnkd.in/eYg4CsTX 🏯 Mizuho Acquires (5% passive ownership) Minority Stake in Private Credit Investor Golub Capital - https://lnkd.in/eXCFtWNJ 💱 Charles Schwab CEO #WaltBettinger to step down - https://lnkd.in/edusCGpu | Financial Times - https://lnkd.in/eyPBS6Sm | The Wall Street Journal - https://lnkd.in/e5VNvKZm | LinkedIn - https://lnkd.in/eNSTWaCA and The Globe and Mail - https://lnkd.in/eCbsazQk - when I read these situations I'm always amazed at what is said and is not said, who is being straightforward and less so. No one is prepared for these situations even with all the preparation at hand - there is a fog that we cannot always see clearly though, there are too many factors that one cannot control or bend to one's will i.e., interest rates, competitors, regulations, decisions made not on our watch, action(s) and or reaction(s) of others etc. but we can control how we react and respond to the fog and push on through (or sometimes go around it) - wishing continued success to the firm and its people.. The man who wants a garden fair, Or small or very big, With flowers growing here and there, Must bend his back and dig. The things are mighty few on earth That wishes can attain. Whate'er we want of any worth We've got to work to gain. It matters not what goal you seek, It's secret here reposes: You've got to dig from week to week To get Results or Roses. -Edgar Guest 🎚️ Private equity puts the L back in LBO - https://lnkd.in/e6shd4Yd

As expected, UBS will bear the consequences of the acquisition of Credit Suisse once again. According to the monthly report from ORX Association , UBS is setting aside $900 million to repay it for the investors affected by Credit Suisse's investment in Greensill, which collapsed in 2021. I have previously mentioned in two previous posts that UBS is still exposed to many losses as a result of the acquisition of Credit Suisse , and will inherit consequences of the misconduct that was committed by the failed bank before it collapsed. In the first post was before the end of the acquisition process . Singapore's Court ordered Credit Suisse to pay $926 million to the former Georgian prime minister over unauthorized trading transactions conducted by a Credit Suisse employee. In the second post, when UBS was fined $387 million as the heir of Credit Suisse for the Archegos deals, which caused Credit Suisse to lose more than $5 billion. I referred to what Michael Grimwade said about the consequences of rescue through acquisition and how rescue bank will inherit all the problems and issues of the rescued bank that may be exposed it to losses due to fines and litigations. It is important to take these consequences into account when assessing risk before acquisition and in capital calculation after acquisition. Due to its acquisition of Credit Suisse, UBS has suffered losses of $1287 million so far. Does UBS still expect to suffer losses due to Credit Suisse in the future? It is still possible, in my opinion

Examining the UBS Group AG's takeover of Credit Suisse teaches a lesson in strategic flexibility within the Financial Services sector. Merely one year after facing skepticism over UBS's pivotal choice, its market capitalisation now tops $100 billion, demonstrating the rewards of audacious strategic initiatives. This step has undeniably enlarged UBS's sphere of market dominance. The deal highlighted the importance of swift, intentional expansion, especially in adapting to the evolving digital arena. With ambitions for controlling a $5 trillion wealth management portfolio, UBS has put a spotlight on the necessity for foresight, digital innovation, and leveraging core competencies. For those of us in the FS recruitment field, we will know how this acquisition has impacted so many of our networks, and we will all appreciate that many have incurred significant costs. However, it is interesting to reflect on the impact of this acquisition as we continue to watch how it all unfolds. #FinancialServices #Risk #Fintech #Recruitment #RAWSearch

The acquisition of the Credit Suisse Group made 2023 an exceptional year in our firm's history. We completed the first-ever combination of two global systemically important financial institutions and have embarked on a major program to integrate the two banks, including in the area of sustainability: We brought together the #Sustainability and impact strategies of both banks, made significant progress in aligning our #Sustainability frameworks and processes and set new baselines and decarbonization targets – all of it in the space of less than 12 months. While we still have significant milestones to deliver in 2024 and beyond, we firmly believe that our activities are already strengthening our creation of long-term value for our shareholders, clients and other stakeholders. Find out more about our plans in our first #Sustainability Report for the combined firm: https://lnkd.in/eQve7s6W #shareUBS #SR23 #Sustainability https://lnkd.in/erDf_hDY

In a strategic move aimed at shedding non-core assets following its acquisition of the collapsed banking group, UBS (UBSG.S) has finalized the sale of Credit Suisse’s securitized products business to Apollo Global Management. Under the agreement, Apollo will acquire $8 billion worth of “senior secured financing facilities,” UBS announced on Wednesday. The deal is expected to yield a net gain of approximately $300 million for UBS in the first quarter of 2024. Tap the link in our bio to read more. #UBS #CreditSuisse #Apollo #AssetSale #FinancialDeal #InvestmentBanking #FinancialServices #MergersAndAcquisitions #BankingIndustry #FinancialNews #DealMaking #Finance #RateCaptain #InvestmentManagement #bankingsector

UBS shares rise 8% as the bank smashes forecasts powered by wealth management and the investment bank 📈 Q1 Net income was $1.8bn, well above analyst expectations of $598mn, and a profit of $1bn in the same period a year earlier. Analysts said the better-than-expected result was mainly driven by parts of the business inherited from Credit Suisse but which UBS wants to exit, as well as by cost-cutting. UBS' wealth management arm reported $27bn in net new assets for Q1, compared to $22bn for the three months prior. Global Banking revenues were up 52% in Q1 2024 vs the same time last year with Capital Markets up 85%, on higher LCM, DCM, and ECM revenues. On the integration of Credit Suisse, UBS said it had realised about $1bn in cost savings in Q1 and was targeting another $1.5bn by the end of 2024. The merger of UBS AG and Credit Suisse AG is expected to be legally completed on May 31, and the merger of its Swiss branches in the third quarter. Source: Reuters #UBS #InvestmentBanking #WealthManagement #Finance

JPMorgan has jumped ahead of Barclays to take the top spot in a UK deal fee league table in a blow to the British lender’s investment banking ambitions. The Wall Street giant raked in $324m (£255m) in dealmaking fees from the UK market in the first half of 2024, rising to first place in the ranking from third place during the same period last year, according to figures from data provider Dealogic. JPMorgan, which is the world’s largest bank by market capitalisation, saw its revenue in the UK surge more than 50 per cent to take its market share of Europe’s biggest fee pool to 12 per cent. Meanwhile, Barclays slipped to second place from first, with $267m (£210m) in UK dealmaking revenue. ✍️ Lars Mucklejohn Continue reading 👇 https://lnkd.in/e6CrPW7n