UBS mulls delaying Q2 results till end-August

UBS Group may delay releasing its second-quarter results until end-August when it could also provide an update on its plans for Credit Suisse Group’s local business, the Financial Times reported.

UBS is due to report its earnings on Jul 25, but complexities include unfinalised details of government support in its emergency takeover of Credit Suisse and different accounting systems of the two banks, the paper said, citing people it did not identify.

UBS is gearing up for an estimated US$34.8 billion gain as a result of its rescue of Credit Suisse, while warning it also faces billions in potential legal and regulatory costs. 

While it is benefiting from a nine billion Swiss franc (S$13.4 billion) state guarantee for a certain portion of losses that it may incur on Credit Suisse positions, chief executive officer Sergio Ermotti has said it was “exceptionally unlikely” that the government will end up taking a financial hit.

Analysts have pointed out that Credit Suisse’s local business, the Swiss Universal Bank, is probably worth multiple times what UBS paid for the company. BLOOMBERG