UBS, Credit Suisse Rise After the Banks Sell Assets

UBS AG (UBSN) and Credit Suisse Group (CSGN) AG rose in Swiss trading after the country’s two largest banks announced the sale of almost $1.3 billion of assets on the last day of 2008. UBS, Switzerland’s biggest bank, gained 7.6 percent, or 1.13 franc, to 15.97 francs in Zurich. Credit Suisse added 12 percent, or 3.5 francs, to 32 francs, the biggest gain in four weeks. UBS sold shares in Bank of China Ltd. worth about $900 million to institutional investors after a lock-up period ended, and Credit Suisse agreed to sell a stake in its Global Investors business to Aberdeen Asset Management Plc (ADN) for 250 million pounds ($363 million) in stock. Both banks are scaling back because of the global credit crunch. “The selling of these assets brings in more liquidity,” said Teresa Nielsen, an analyst at Bank Vontobel in Zurich. UBS, which got a $59.2 billion aid package by the Swiss government and central bank last year, has slashed 9,000 jobs and posted almost $49 billion in losses and writedowns, more than any other European bank. Credit Suisse said Dec. 4 it plans to cut 11 percent of its workforce and scrap bonuses for top executives after losses of $2.5 billion in the previous two months. UBS earned a profit of approximately $400 million from the sale, said a person familiar with the terms, who declined to be identified. In 2005, UBS paid $500 million for 1.6 percent of Bank of China, the country’s third-largest lender. The stake sold by Credit Suisse includes assets under management of about 75 billion Swiss francs ($68 billion) and divisions in Europe, the U.S. and Asia, the bank said in an e-mailed statement. Credit Suisse will receive a holding of almost 25 percent in the Aberdeen-based firm and a seat on its board. To contact the reporter on this story: Warren Giles in Geneva at wgiles@bloomberg.net To contact the editors responsible for this story: Mike Anderson manderson34@bloomberg.net; Frank Connelly at fconnelly@bloomberg.net