UBS Group AG (SIX:UBSG) has announced that it could stand to lose around $17 billion from its planned merger with Credit Suisse (SIX:CSGN). The Swiss bank said it would incur a hit of $13 billion from fair value adjustments on financial assets and liabilities, as well as an additional $4 billion charge from litigation and regulatory matters. However, these losses would be offset by a one-time $34.8 billion gain from pro forma negative goodwill. UBS also expects to receive a boost worth $17.1 billion from other factors, including a write-down of Credit Suisse’s Additional Tier 1 bonds. Despite the potential risks, Swiss-listed shares in UBS were slightly higher in midday trading on Wednesday.
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