UBS Group AG has decided to liquidate a real estate fund acquired from Credit Suisse, valued at over $2 billion. The decision comes after the fund’s value significantly declined throughout 2023, leading to substantial redemptions. UBS believes selling the remaining assets at this time would negatively impact remaining investors.
UBS Group AG (UBS) shares climbed in pre-market trading after reporting strong second-quarter 2024 results, exceeding expectations on revenue and profit. The results highlight the successful integration of Credit Suisse and demonstrate the bank’s commitment to achieving its financial targets. UBS also provided an outlook for the third quarter and second half of 2024, anticipating continued integration-related expenses and cost savings.
UBS executives have expressed concerns about the Swiss government’s plan to impose tougher capital requirements on the bank. The government’s plan aims to prevent a repeat of the Credit Suisse collapse and ensure that UBS does not become too big to fail. However, UBS argues that additional capital is the wrong remedy and will require it to find $15 billion to $25 billion in additional capital. Despite this, UBS remains committed to returning excess capital to shareholders through dividends and share repurchases.
