CS Credit Suisse Group

By Pierre Bertrand

UBS Group said on Friday that it has signed a loss protection agreement with the Swiss government effective from the completion of the bank's acquisition of peer Credit Suisse.

The bank said that the agreement reflects the terms of the guarantee determined by the Swiss Confederation on March 19.

UBS will bear the first 5 billion Swiss francs ($5.56 billion) of potential losses realized on a designated portfolio of Credit Suisse non-core assets, while the Swiss government will cover the next CHF9 billion of potential losses, the bank said.

UBS said it intends to "manage these assets in a prudent and diligent manner and intends to minimize any losses and maximize value."

UBS added that it will also cover the initial and ongoing external costs incurred by the government and the Swiss Financial Market Supervisory Authority for the loss protection agreement.

UBS said that it expects to close its purchase of Credit Suisse as early as Monday.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

June 09, 2023 04:25 ET (08:25 GMT)

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