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“On average, profits after the merger are 4 percent lower than before,” the professor at private business school IMD in Lausanne and Singapore said in an interview with Tamedia newspapers on Monday. “Usually there is almost no synergy effect.” He comes to this conclusion because he has studied thousands of bank mergers around the world.
The only synergy in CS and UBS is low costs. “But this potential is limited and is associated with lower revenue, for example, as client funds flow out,” the economist said. Confidence in the predictability of the Swiss financial center was eroded.
Bris advocated for CS to continue as UBS’s sister bank. The management of the two banks should be clearly separated. “The only good model for Switzerland is for the two banks to operate separately in the retail sector.” (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
