UBS Group AG said that it expects a financial hit of about $17 billion from the takeover of its rival Credit Suisse Group AG as the Swiss biggest bank is preparing to complete the rescue mission.
In the presentation on Wednesday, UBS estimated a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities. Meanwhile, there will be approximately $4 billion in potential litigation and regulatory costs stemming from outflows.
On the other hand, the group expected to book a one-off gain stemming from “negative goodwill” at a value of $34.8 billion by buying Credit Suisse for a small portion of its book value.
Still, UBS noted that these estimates are preliminary and the numbers could change moving forward.