The leading banking giant UBS Group AG (NYSE:UBS) continues to remain under the regulatory spotlight of the Swiss authorities for its merger with Credit Suisse. FINMA, Switzerland’s main financial regulatory authority, is closely examining UBS and has stated its intention to designate an external supervisor to oversee the process.
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FINMA released a risk report yesterday, almost five months after the completion of the merger between UBS and Credit Suisse. According to the report, the integration of these two banks has brought a notable increase in the risks associated with cyberattacks, information-technology disruptions, and fraud. The regulator further expressed its concern over the inadequate controls for managing these risks.
As a result, FINMA has emphasized its commitment to closely supervising the integrated bank throughout the ongoing integration process. Earlier this year, the actions taken by Swiss authorities during the merger process effectively stabilized the situation for UBS.
Recently, UBS announced its Q3 2023 results, marking its first quarterly loss since the merger. The results highlighted the takeover-related costs of $2.2 billion. The bank also reported a net loss attributable to shareholders of $785 million in the third quarter.
Based in Switzerland, UBS Group is a global banking institution providing a range of financial services, including banking and wealth management. In March 2023, UBS acquired Credit Suisse in a deal backed by Swiss authorities to avert a major banking crisis.
What is the Price Target for UBS?
After facing a setback in March 2023, the UBS share price has showcased a notable recovery, especially in the last six months, registering a trading gain of 26%.
Overall, UBS stock has received a Moderate Buy rating on TipRanks based on a total of 13 recommendations from analysts. It includes nine Buy, three Hold, and one sell rating. The average price prediction is $30.58, which is 25% higher than the current price.
