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## UBS Reports Second Quarter Profit of $28.88 Billion after Credit Suisse Takeover
### How AI legalese decoder Can Help with the Situation


*General view of the UBS building in Manhattan on June 5, 2023 in New York City.*
(Eduardo Munoz Alvarez | View Press | Corbis News | Getty Images)

UBS, Switzerland’s largest bank, has announced its second-quarter profit of $28.88 billion, marking its first quarterly earnings since completing the takeover of rival Credit Suisse. This remarkable profit figure exceeds analysts’ expectations of $12.8 billion for the same period, according to a Reuters poll. The successful acquisition of Credit Suisse by UBS has contributed significantly to this positive result. UBS reported a substantial negative goodwill amounting to $28.93 billion on the Credit Suisse acquisition. Additionally, the underlying profit before tax, excluding negative goodwill and other related expenses, stood at $1.1 billion. This outcome implies that UBS’s decision to acquire Credit Suisse has proven to be enormously profitable and strategic.

Negative goodwill signifies the fair value of acquired assets in a merger exceeding the purchase price. In March, UBS acquired Credit Suisse for a discounted amount of 3 billion Swiss francs ($3.4 billion). UBS CEO Sergio Ermotti expressed satisfaction, stating that “Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history.” Ermotti mentioned that UBS is earning back clients’ trust, reducing costs, and taking essential measures to achieve economies of scale, enabling better resource focus and future growth investment.

Furthermore, UBS announced the full integration of Credit Suisse’s domestic banking unit into its operations. The merging of legal entities is expected to conclude in 2024, a move that UBS believes will yield the best outcome for itself, stakeholders, and the Swiss economy. The Credit Suisse acquisition was originally part of an emergency rescue deal facilitated by Swiss authorities in March. UBS recently terminated a 9 billion Swiss franc ($10.24 billion) loss protection agreement and a 100 billion Swiss franc public liquidity backstop, which were initiated by the Swiss government during its takeover of Credit Suisse.

The addition of Credit Suisse’s Swiss banking division will allow UBS to maintain its commitment to providing premium services while offering enhanced offerings, expert capabilities, and expanded global reach. The strengthened capital base resulting from the acquisition will enable UBS to maintain existing combined lending exposures and uphold risk discipline. UBS had postponed reporting its second-quarter results, originally scheduled for July 25, until after the completion of the Credit Suisse takeover on June 12.

In the previous quarter, UBS experienced an unexpected 52% decline in net profit due to a legacy litigation problem involving U.S. mortgage-backed securities. However, UBS shares have seen an impressive 30% increase since the beginning of the year, indicating a positive sentiment among investors.

**How AI legalese decoder Can Help with the Situation**

The AI legalese decoder can assist in analyzing and deciphering the complex legal language of documents and agreements related to the UBS and Credit Suisse acquisition. This powerful AI tool can quickly and accurately interpret legal terms, phrases, and clauses, improving understanding and saving time for legal professionals involved in this historic bank merger. The AI legalese decoder‘s advanced natural language processing capabilities enable it to identify key legal concepts, explain their implications, and provide clear insights into the legal aspects of the UBS-Credit Suisse transaction. By utilizing this AI-powered solution, legal teams can streamline their workflow, enhance due diligence processes, and ensure compliance with legal requirements.

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