Lender UBS is reviewing options for the Swiss bank Credit Suisseincluding the possibility of keeping the unit’s investment banking operations and selling the rest, two sources close to the matter told Reuters.
UBS is studying plans to sell the Swiss banking business of Credit Suisse in an initial public offering (IPO) after taking out its smaller rival, said the sources, who spoke on condition of anonymity.
Considerations are at an early stage as UBS is focused on completing that acquisition and may not make a final decision on whether to pursue an IPO for months, another source said.
UBS and Credit Suisse declined to comment. UBS is rushing to complete the bailout of state-backed Credit Suisse, which will create a banking giant that will oversee more than $5 trillion in invested assets.
The future of business Credit Suisse in Switzerland is being closely watched as one of UBS’s key strategic decisions. A combination with UBS would create a dominant position in the Swiss lending market, according to analysts at jefferies.
The merger has raised concerns among lawmakers that it could reduce competition.
The Swiss bank of Credit Suisse it is one of the four operating units of the lender and is considered the jewel in the crown. In 2022, the unit had pre-tax profits of 1.5 billion Swiss francs ($1.7 billion).
The elimination of its investment banking operations would mean reversing a measure adopted just a few months ago. In January, Credit Suisse had moved business from its broader investment banking division to the Swiss unit, according to the company’s 2022 annual report. Credit Suisse.
Source: Reuters
Source: Gestion
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