UBS Seeing Inflows Across Units In Third Quarter, CEO Ermotti Says

(Bloomberg) — UBS Group AG is seeing inflows both in its own franchise and at Credit Suisse over the past two months, as clients return following the completion of the takeover in June.

“Already in the second quarter at Credit Suisse — although April and May were negative — in June they saw positive inflows, after the closing,” Chief Executive Officer Sergio Ermotti said in an interview on Bloomberg TV. “As we speak, in the third quarter, we see inflows on both platforms, not only in wealth management but also in the Swiss bank.” 

Winning back clients that had deserted Credit Suisse over the past year is key as UBS moves ahead with the integration of its former rival. The Swiss firm on Thursday posted the biggest-ever quarterly profit for a bank in the second quarter and said it would fully integrate Credit Suisse’s domestic bank.

UBS’s own wealth management business saw $16 billion of inflows in the three months through June, the best second quarter in more than a decade. At Credit Suisse’s wealth unit, clients pulled $30 billion.

Flows this quarter have been positive so far, with $1 billion in net new money returning to Credit Suisse’s wealth unit through Aug. 28, and $7 billion to UBS’s wealth management. Clients also added $10 billion in deposits to Credit Suisse’s wealth unit, and 4 billion francs to its Swiss bank.

“We are counting on taking back as much as possible of the 200 billion that we lost in the last few quarters,” Ermotti said.

Read More: UBS Smashes Banking Record as It Absorbs Credit Suisse