UBS Stock Price Rises to Highest Since 2008

Aug 31, 2023 thejournalbiz

UBS Posts Record $29 Billion Profit on Credit Suisse Deal

Shares in UBS scaled fresh multiyear highs, after the bank posted a record $29 billion profit following its shotgun takeover of Credit Suisse, and said it would keep the latter’s domestic arm.

UBS stock in Zurich rose more than 6% Thursday to close at 23.50 Swiss francs.

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Shares in @UBS scaled fresh multiyear highs after the bank posted a record $29 billion profit following its takeover of @CreditSuisse #ubs #shares #banking #CreditSuisse pic.twitter.com/nBCC1EAowd

— The_Journalbiz (@the_journalbiz) August 31, 2023

Factset on UBS chart

That is their highest end-of-day level since October 2008, according to Dow Jones Market Data. UBS stock peaked in 2007, then began a long descent as the global financial crisis unfolded.

On Thursday, UBS’s U.S.-listed stock (UBS) also gained, recently trading more than 5% higher. That put those shares on course for their highest-ever close, based on data going back to 2014.

The large net profit reflected Credit Suisse’s knockdown price. UBS paid $3.8 billion in stock for the smaller bank, while acquiring additional equity via a $29 billion accounting gain. That type of gain occurs when a company buys assets for less than they are worth—typically in a distressed situation.

The quarterly profit, while a feature of the deal accounting, is the largest among any major developed-market bank ever, according to FactSet, beating the $14.47 billion haul earned by JPMorgan Chase last quarter.