During recent UBS press conferences following the Credit Suisse acquisition, journalists have concentrated on questions surrounding integration and workforce reductions. Meanwhile, analysts are closely tracking UBS's progress in addressing legacy issues and meeting cost-cutting targets.

The initial platform integration and migration of Credit Suisse clients to the UBS platform in recent weeks have sent positive signals. However, this progress is unlikely to impact costs in the current figures. «We expect notable cost structure improvements by mid-2025, as realizing these savings will take time,» wrote a ZKB analyst in a recent preview.

UBS has estimated integration costs at roughly 1.1 billion dollar for Q3 and projected a modest slowdown in cost-cutting progress.

7 Billion dollar in Cost Savings by Year-End

Compared to the combined UBS and CS cost base as of end-2022, UBS has achieved gross annualized cost savings of 6 billion dollar to date, aiming to reach 7 billion dollar by year-end.

In its Non-Core and Legacy segment, UBS made strides in prior quarters, offloading non-core assets and divesting areas outside its core business. The impact of declining interest rates on UBS’s results will now be of particular interest.

In Wealth Management (GWM), AUM likely increased thanks to favorable financial market performance. The extent to which client assets responded to interest rate changes will be reflected in net new money (NNA). ZKB forecasts GWM AUM at 4.224 trillion dollar and NNA at 24 billion dollar.

Growth Expected in Investment Banking and GWM

Recent earnings from U.S., U.K., and European banks showed encouraging figures, not due to an M&A recovery but rather an uptick in equity and bond issuances. UBS’s Investment Banking division has cautioned that deal execution delays are anticipated driven by ongoing market uncertainty and the seasonal slowdown typical of the third quarter, analysts report. A lower adjusted pre-tax profit is anticipated in this segment.

Headcount Likely to Continue Slow Decline

Public interest will again focus on UBS’s workforce developments. At the end of Q3, UBS had 109,991 full-time equivalent employees—about 2,850 fewer than at the end of 2023.

UBS shares closed at 28.06 francs on Monday, a slight dip from the mid-October high of 28.78 francs. The stock has risen 7.5 percent year-to-date, hitting its lowest point at 22.53 francs on August 5.