On Thursday, trading of UBS (UBS) shares was temporarily paused due to volatility, with the stock dipping by up to 3.9% before recovering most of its losses.
This fluctuation occurred after the Swiss banking giant released its detailed annual report and analysts highlighted that the lender’s net income suffered due to a $1.2 billion reduction in the negative goodwill value stemming from its acquisition of Credit Suisse.
Moreover, analysts at Morgan Stanley noted that UBS is adjusting its 2023 net income downwards to $27.8 billion from $29 billion due to increased litigation provisions, contingent liabilities, and fair value adjustments.
This led to a decrease in CET1, potentially weighing on the bank's share price.
Analysts also pointed out that UBS is actively addressing the "material weaknesses" previously identified by Credit Suisse in 2021 and 2022.
UBS shares were last down 1.5% in Zurich, while US-listed stock fell 2.2% in premarket trading.