(March 22): UBS Group AG shares have erased almost all of the losses made during the recent banking rout, emerging as a rare winner from the historic rescue deal for rival Credit Suisse AG.
The Swiss lender is leading gains among European banks this week, as fears around the stability of the finance sector eased after its emergency takeover of Credit Suisse. Shares gained as much as 3.6% to 20.12 Swiss francs (RM97.21) on Wednesday (March 22).
The stock had pared gains to trade flat at 19.37 francs as at 9.46am in Zurich, but was about 14% higher since the Sunday agreement brokered by the Swiss government.
Analysts have applauded the deal for its cost-saving benefits for UBS, which also gains valuable assets at a knock-down price, as well as access to Credit Suisse’s roster of wealthy clients.
US bank shares have also been stabilising from a sell-off generated by troubles at regional lenders, following reassurances from US Treasury Secretary Janet Yellen that the government could intervene to protect the broader US banking system.
“The biggest pressure point or danger is market participants conflating these events into a 2008 crisis narrative, when we do not view it as that at all,” said David Storm, the chief investment officer of RBC Wealth Management.