UBS flags $17bn hit from Credit Suisse takeover

UBS said the estimates were preliminary and the numbers could change materially later on. It also said it might book restructuring provisions after that, but offered no numbers.

Switzerland's government is providing a guarantee of up to 9bn francs for further potential losses on a clearly defined part of Credit Suisse portfolio. Pic: Michael Buholzer/Keystone via AP, File

UBS Group expects a financial hit of about $17bn (€15.6bn) from the takeover of Credit Suisse Group, the bank said in a regulatory presentation as it prepares to complete the rescue of its struggling Swiss rival.

UBS estimates a negative impact of $13bn from fair value adjustments of the combined group's assets and liabilities. It also sees $4bn in potential litigation and regulatory costs stemming from outflows.