UBS' Attractive Interest Rates - A Strategy To Recover Credit Suisse's Lost Terrain: Report

UBS Group AG UBS is reportedly offering enticing interest rates on deposits to attract and retain clients following its acquisition of Credit Suisse, a move aimed at repairing the outflows experienced by the latter. 

The Swiss banking giant is offering approximately 1.8% interest on deposits exceeding 50,000 Swiss francs held for a minimum of three months, a rate that is notably higher than competitors Zuercher Kantonalbank and Raiffeisen, according to a news report by Reuters.

The acquisition of Credit Suisse came with its challenges for UBS. The subsidiary recently reported a loss of $1.6 billion due to the reclassification of loans. 

This financial setback underscores UBS's complexities in integrating and revitalizing Credit Suisse.

Also Read: UBS Slashes 70% Of Credit Suisse's HK Research Staff Post-Integration: Report

The report adds that UBS's latest strategy is a part of the broader effort to regain the trust and business of Swiss clients and mitigate the risk of outflows from the wealth management sector. 

Following the merger, UBS is particularly keen on retaining clients who had accounts with both banking institutions and might be considering diversifying their risk, mentioned the report.

"Winning back is winning back and is resetting our starting moment, and then from there on we are going to look at our combined growth aspirations," UBS's Chief Executive Sergio Ermotti said at a conference in September, which is noted in the report.

Also See: UBS Eyes Strategic Alliances With China's ICBC Amid Global Expansion: Report

Price Action: UBS shares are trading higher by 0.80% in the premarket to $24.04 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.