UBS to absorb Credit Suisse’s domestic bank

Risky manoeuvre: People passing by a UBS signage in Zurich. Analysts warn that the complexity and the hasty nature of the deal will bring significant execution risks as UBS must aggressively cut jobs, shrink Credit Suisse’s investment banking operations and manage outflows as clients seek to spread risk. — AFP

ZURICH: UBS Group will fully absorb Credit Suisse’s domestic bank, adding that it is increasing its ambitions for cost savings to more than US$10bil across the group.

The long-awaited announcement about Credit Suisse’s home bank was made in tandem with UBS’s first earnings report since taking over its stricken rival. The decision comes despite a likely backlash in Switzerland where it could result in the loss of thousands of jobs.