UBS stock closed in on a buy point Wednesday after the Swiss bank cleared estimates for its second-quarter results.
UBS Group reported earnings of 34 cents per share, ahead of FactSet views of 29 cents. Total revenue spiked nearly 25% to $11.9 billion, also beating analyst expectations for $11.22 billion.
Net profit tumbled by $26.19 billion for the quarter due to negative goodwill from its Credit Suisse acquisition in March 2023. Still, UBS' net profit of $1.136 billion cleared FactSet expectations for $638 million.
Swiss regulators brokered a deal last year for UBS to buy Credit Suisse for just over $3 billion amid Credit Suisse's liquidity crisis. The emergency buyout followed a $54 billion injection to Credit Suisse from the Swiss National Bank
Since the bailout deal, UBS has offloaded assets and cut jobs to integrate Credit Suisse into its business.
The bank now expects to achieve $7 billion in gross cost savings by the end of 2024 from the Credit Suisse deal, with a target of $13 billion in savings by the end of 2026.
UBS Stock
UBS stock jumped 5.6% Wednesday, popping to test resistance at its 50-day moving average.
Shares, trading in a double-bottom base, rebounded above their 200-day line on Tuesday. The current pattern has a 31.45 buy point, MarketSurge charts show.
UBS stock is now flat on the year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
