UBS is taking over Credit Suisse, a move that will reshape Swiss banking and result in thousands of job losses.
UBS Group made a profit of $29. 3 billion (£228 billion) between April and June, in its first report since purchasing its struggling competitor.
The profit made this year is much higher compared to last year, mainly because of a one-time increase from Credit Suisse.
However, the combined bank will lay off 3,000 employees in the next few years in order to reduce expenses by over $10 billion.
UBS saved Credit Suisse for $3. 25 billion in March because regulators were worried that Switzerland‘s second biggest bank would collapse due to customers taking their money out.
Credit Suisse had many problems and banking failures in the US, which made people lose trust in the bank. This made the bank look for someone who would buy it.
UBS has said that it will take over Credit Suisse’s domestic bank instead of making it a separate company. The bank made money last year.
“Our research clearly shows that combining all aspects of UBS is the most beneficial result for UBS, our investors, and the Swiss economy,” said CEO Sergio Ermotti in a statement.
The combination will happen next year and all customers will move over by 2025.
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UBS to lay off 3,000 staffs following takeover by Credit Suisse
