Investors seek for answers in Credit Suisse, UBS results
ZURICH
When Credit Suisse’s unveils what are likely its final quarterly results Monday, investors will be seeking clues to the magnitude of the challenges awaiting UBS, after it was strongarmed into taking over its stricken rival.
Credit Suisse pushed forward its result release to come out the day before those of UBS, as Switzerland’s largest bank prepares to swallow its long-time main domestic rival.
The results will be closely studied for the mass withdrawals that took place as panic engulfed the bank last month, prior to the hastily arranged takeover.
Absorbing Credit Suisse will be a complex task, and “we won’t have all the answers we need,” Swissquote analyst Ipek Ozkardeskaya told AFP, pointing out that “the merger is fresh and (even) UBS didn’t have enough time to dive in Credit Suisse’s business”.
The answers to the many remaining questions around the depth of crises dogging Credit Suisse will arrive “gradually”, the analyst said, adding that she expected UBS over time “to take control of the situation and structure the bank in a healthy way.”
Credit Suisse had suffered a string of scandals over several years, and after three U.S. regional banks collapsed in March unleashing market panic, it was left looking like the weakest link in the chain.
Over the course of a nerve-wracking weekend, Swiss authorities organised an emergency rescue, pressuring UBS to agree to a $3.25-billion mega merger on the evening of March 19.
