- UBS Group AG (NYSE:UBS) said it expects a financial hit of $17 billion from the acquisition of Credit Suisse Group AG (NYSE:CS) in a regulatory filing issued yesterday.
- The Swiss banking giant commented it was rushed into the emergency takeover by Swiss governmental authorities, which may have affected its “ability to fully evaluate Credit Suisse’s assets and liabilities.”
- Also Read: UBS Acquisition of Credit Suisse: Bye Bye AT1 Investors, Anxiety Builds Among Banks’ Subordinated Bondholders
- In particular, UBS expects a negative impact of around $13 billion from fair value adjustments of the new combined entity’s assets and liabilities and litigation and regulatory costs expenses of about $4 billion, CNBC reported.
- Also, UBS projects a one-off negative goodwill gain of $34.8 billion from the acquisition.
- Last week, UBS CEO Sergio Ermotti shared his thoughts on troubled Credit Suisse, saying that the latter bank has stabilized and that he did not think outflows at the embattled bank were continuing.
- Also related: Credit Suisse Reports CHF 61.2B Withdrawal In Final Quarterly Earnings Ahead Of UBS Takeover
- Price Action: UBS shares are trading higher by 0.31% at $19.16 premarket on last check Wednesday.
FedEx To Rally Around 19%? Here Are 10 Other Analyst Forecasts For Monday
JP Morgan raised the price target for The Progressive Corporation (NYSE: PGR) from $146 to $149. JP Morgan analyst Jimmy Bhullar maintained an Overweight rating. Progressive shares fell 0.8% to close at $139.30 on Friday.
