Daily Management Review

UBS adjusts 2023 earnings data, worsens Credit Suisse's asset valuations


UBS Group AG modified its estimate of net income for 2023 because of an update to Credit Suisse's asset valuation at the time of the bank's acquisition.

martin abegglen
martin abegglen
The asset valuation was lowered by $1.2 billion, per the UBS analysis. In this context, the $27.7 billion recorded in conjunction with the acquisition of Credit Suisse represents the amount of negative goodwill. 

Negative goodwill, which resulted from the acquired assets' value exceeding the transaction price, was first estimated to be worth $28.925 billion.

UBS reports the negative goodwill as income in their yearly report.

The Swiss bank lowered its earnings per share for 2023 to $8.45 from $8.81 and its net income to $27.8 billion from $29 billion.

Additionally, at the end of the previous year, it decreased its Common Equity Tier 1 (CET1) capital adequacy ratio from 14.5% to 14.4%.

source: ft.com