UBS and CS: the big banks in direct comparison

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UBS’s plans for a takeover of Credit Suisse are becoming increasingly concrete. But what connects the two banks? And what separates them? The equation.

Credit Suisse and UBS are the two largest Swiss banks and are considered systemically important to the country’s financial system.

Both banks have focused their business activities on asset management, wealth management and investment banking. They are also active in banking for both individuals and businesses. However, they differ in several parameters.

UBS continued to post earnings of $7.63 billion in 2022 and shareholders received a 10 percent higher dividend of $0.55. In total, clients entrusted approximately $60 billion in new funds to the bank last year. At the end of 2022, UBS managed CHF 354 billion in assets in Switzerland.

Credit Suisse posted a loss of 7.3 billion francs in fiscal year 2022, which is about 7.9 billion in US dollars. In the fourth quarter alone, clients raised about 110 billion francs or about 8 percent of assets under management with the bank. Much of the deductions took place in the first two weeks of October 2022 following social media rumors about the bank’s difficulties.

UBS employs approximately 72,600 people worldwide. In Switzerland, the bank has 200 branches with 4,600 customer advisers. It has an equity of 14.2 percent.

CS’s equity ratio stood at 14.1 percent at the end of 2022, but has probably fallen in the meantime due to the outflow of liquidity. At the end of last year, the number of employees worldwide was 50,480, of which 16,700 in Switzerland. The cuts announced in October will likely reduce this number by an additional 9,000 jobs. CS operates 95 branches in Switzerland.

The market value of UBS recently amounted to more than 77 billion dollars, that of CS fell to about 8 billion dollars on Friday evening. (SDA/brother)

Source:Blick