UBS Gears Up for Record Breaking Gain Once Credit Suisse Closes

UBS Group AG is likely to report a gain of as much as 51 billion Swiss francs ($57 billion) in its second-quarter profit related to the acquisition of rival Credit Suisse Group AG, due to close in May.

The gain —- which would catapult the Swiss lender to the biggest ever profit in banking — stems from an accounting term known as negative goodwill. That recognizes the bargain-basement price of $3 billion that UBS agreed to pay for its stricken neighbor, compared with the bank’s book value of 54 billion francs as of the end of March.

Watch: UBS CEO Sergio Ermotti discusses the Swiss lender’s financial results, outlook and strategy.

Source: Bloomberg

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