European markets open higher following UBS earnings; UBS up 5%

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European markets opened higher as investors assess UBS earnings.

UBS said the result primarily reflected $28.93 billion in negative goodwill on the Credit Suisse acquisition. Underlying profit before tax, which excludes negative goodwill, integration-related expenses and acquisition costs, came in at $1.1 billion.

The group also announced that Credit Suisse's stalwart domestic banking unit will be fully integrated into UBS, with a merging of legal entities expected to close in 2024. The fate of Credit Suisse's flagship Swiss bank, a key profit center for the group and the only division still generating positive earnings in 2022, was a focal point of the acquisition.

The emergency rescue deal that saw UBS purchase Credit Suisse at a heavily discounted 3 billion Swiss francs was mediated by Swiss authorities over the course of a weekend in March.CNBC Pro: Look beyond the 'Magnificent Seven' tech stocks, analyst says — and names 5 top picks When it comes to picking stocks, Hannah Gooch-Peters of asset management firm Sanlam Investments UK avoids chasing trends.

 

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