UBS stands to gain big and but potentially lose bigger in Credit Suisse takeover

Bank is gearing up to gain $34bn in negative goodwill, but investors may view any windfall it as an accounting quirk rather than a sign of strength

UBS sees mark-downs of about $13 billion on Credit Suisse assets and is also estimating that legal liabilities may cost as much as $4 billion over 12 months. Picture: Getty

UBS Group AG is gearing up for an estimated $34.8 billion (€32.1 billion) gain as a result of its emergency takeover of Credit Suisse Group AG, while warning it faces billions in potential legal and regulatory costs from the rescue of its stricken former rival.

The Swiss bank stands to benefit from the combined firms’ negative goodwill, based on a first assessment it has made on data as of the end of 2022, according to ...