Yahoo Finance UBS Group (UBS) to Keep 100 Credit Suisse IB Jobs in Asia
UBS Group AG UBS is in the works to retain more than 100 investment bankers of Credit Suisse Group AG, per a Bloomberg article citing people familiar with the matter.
Following the acquisition of Credit Suisse, expected to close on Jun 12, UBS plans to fortify its talent pool across Asia to better compete with its rivals that have a stronger presence in the continent.
Notably, the company is in advanced discussions to keep dozens of Credit Suisse's senior dealmakers in countries like South Korea, Thailand, Vietnam and India. However, the retention numbers do not include China.
In government-backed efforts to fend off panic in the global banking system following the collapse of Silicon Valley Bank, UBS agreed to acquire Credit Suisse in March 2023 in an all-share deal valued at $3.2 billion. When the deal was announced, UBS disclosed plans to pare down Credit Suisse’s investment banking business and slash jobs following the takeover.
When the deal was announced, it was expected to generate an annual run rate of cost reductions of more than $8 billion by 2027. UBS Group also expected the transaction to be accretive to EPS by 2027 and the bank to remain well-capitalized above its 13% target.
The combined entity will have more than $5 trillion in total invested assets. The acquisition will also fortify UBS Group’s position as a preeminent global wealth manager, with more than $3.4 billion in wealth management assets.
However, as UBS prepared to complete the takeover in mid-May, it projected a negative impact of $13 billion on its shareholders’ equity from fair value adjustments of the combined group's financial assets and liabilities. Including other factors, it was estimated to negatively impact its shareholders’ equity by $28.3 billion. This will be offset by a $17.1-billion benefit from the AT1 bond write-downs and other factors.
UBS Group’s shares have gained 9.1% on the NYSE over the past six months compared with the industry’s rise of 5.7%.
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UBS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Finance Stocks Worth Considering
A couple of better-ranked stocks from the finance sector are OFG Bancorp OFG and Pathward Financial Inc. CASH, each currently carrying a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for OFG’s 2023 earnings has been revised 3.3% upward over the past 60 days. The stock has declined 6.5% over the past six months.
The consensus estimate for CASH’s fiscal 2023 earnings has been revised 1.8% upward over the past 30 days. The company’s share price has increased 16% over the past six months.
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