GENEVA (AP) \u2014 UBS on Tuesday reported a fourth-quarter pretax loss of more than $750 million as the Swiss banking giant continued to integrate its longtime rival Credit Suisse after\u00a0a government-orchestrated merger.<\/p>\n\n\n\n
The Zurich-based lender reported losses before tax of $751 million in the quarter, which included losses of more than a half-billion dollars linked to an investment in SIX Group, which operates Switzerland\u2019s main stock market. The net loss in the quarter came in at $278 million.<\/p>\n\n\n\n
UBS said it expects to complete the merger of Credit Suisse by the end of the second quarter this year, and the merger of the two banks\u2019 Swiss operations by the end of the third quarter. The company plans to increase its dividend for the 2023 financial year by 27 percent, and said it would resume share buybacks in the second half of the year.<\/p>\n\n\n\n
\u201cAs we move to the next phase of our journey, we will focus on restructuring and optimizing the combined businesses,\u201d CEO Sergio Ermotti said in a statement. \u201cWhile our progress over the next three years will not be measured in a straight line, our strategy is clear.\u201d<\/p>\n\n\n\n
The bank said net new assets came in at $22 billion during the fourth quarter, which marked a slowdown from the injection of new assets shortly after the merger was completed in June last year. For the year, UBS took in $77 billion in new assets across its wealth-management and personal and corporate banking segments.<\/p>\n\n\n\n
The bank said operating expenses jumped 43% to more than $5 billion in the quarter, largely due to expenses linked to the Credit Suisse consolidation and integration expenses, and higher compensation for financial advisors.<\/p>\n\n\n\n
Of that, UBS said it faced a $60 million charge from the U.S. Federal Deposit Insurance Corp. to recover losses to an insurance fund in connection with the failures of\u00a0Silicon Valley Bank and Signature Bank\u00a0in the United States last year. Woes at Credit Suisse \u2014 before the UBS merger \u2014 and the two U.S. banks unsettled global financial markets in 2023.<\/p>\n\n\n\n
UBS said revenues jumped 35% to nearly $10.9 billion in the fourth quarter.<\/p>\n\n\n\n
Underlying pretax profit of $592 million in the fourth quarter fell more than one-third compared with the third quarter, UBS said, citing \u201clower client activity and billable invested assets\u201d as well as $75 million in bank-levy expenses and the cost of the FDIC assessment.<\/p>\n","protected":false},"excerpt":{"rendered":"
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