Now expects to achieve 7 bln usd gross savings by end 2024 (Il Sole 24 Ore Radiocor) - Bern, 14 Aug - UBS said that it expects the pace of gross cost savings in the third quarter to be modestly lower than those in the second.

Integration-related expenses should be partly offset by around 0.6 billion dollar accretion of purchase accounting effects.

UBS said that in the second quarter it realized an additional 0.9 billion dollars in gross cost savings, for a total of around 6 billion in annualized exit rate gross cost savings in 2022.

It now expects to achieve around 7 billion of gross cost savings by end-2024, or around 55% of its ambition of around 13 billion dollars by end-2026.

The Swiss lender that it expects uncertainties related to the ongoing conflicts, other geopolitical tensions, and the upcoming US elections to persist for the foreseeable future, leading to greater market volatility compared with the first half of 2024.

"Entering the third quarter, we are seeing positive investor sentiment and continued momentum in client and transactional activity. Also visible are moderate net interest income headwinds from ongoing mix shifts in Global Wealth Management and the effects of the second Swiss National Bank rate cut, not yet captured in our deposit pricing in Personal & Corporate Banking," it said.

AAA-Sch

(RADIOCOR) 14-08-24 08:01:27 (0087) 5 NNNN