Financial Results

UBS Agrees Sale Of $8 Billion Portfolio As Part Of Post-Credit Suisse Deal

Editorial Staff 28 March 2024

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.

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