Financial Results
UBS Agrees Sale Of $8 Billion Portfolio As Part Of Post-Credit Suisse Deal
The move is part of UBS's aim to reduce exposures to investment banking as it integrates with Credit Suisse.
UBS has agreed to sell $8
billion of senior secured financing facilities to Apollo, a
private capital firm, as it cuts some of the investment bank
connected to its
purchase of Credit Suisse a year
ago.
Apollo originally agreed with Credit Suisse to buy its
securitised products arm in 2022 in a deal that included a
related investment management contract.
UBS is now repositioning the business, cutting risks where
possible as it concentrates on areas such as wealth
management.
“This mutually beneficial agreement aligns with UBS’s strategy of
winding down and simplifying its Non-Core and Legacy (NCL)
portfolio and with Apollo’s continued momentum in growing Atlas
as a standalone origination platform,” UBS said in a statement
yesterday.
“For UBS, these actions will allow the bank to further accelerate
its plans to unwind and more efficiently simplify its NCL
portfolio, while minimising any disruption to clients, and reduce
risk-weighted assets and leverage ratio denominator in NCL,” it
said.
UBS said it expects to recognise a net gain in the first quarter
of 2024 of around $300 million from the conclusion of these
agreements and the assignment of the senior secured financing
facilities while Credit Suisse is expected to recognise a net
loss of around $900 million.
The bank announced its fourth-quarter 2023 financial results here.