After being acquired by Credit Suisse, UBS reports a whopping $29 billion profit for the second quarter.

After acquiring Credit Suisse, the biggest bank in Switzerland, earlier this year, UBS Group AG reported its first quarterly profits on Thursday, reporting a profit of $28.88 billion for the second quarter of the current fiscal year. In March, UBS purchased Credit Suisse for only 3 billion Swiss francs ($3.4 billion), saving it from going bankrupt.

Due to the deal's recent closure in June, the results for UBS as a whole only contain earnings for one month from Credit Suisse.

According to UBS, the $28.93 billion in negative goodwill on the Credit Suisse purchase was the main factor in the result. Underlying earnings before tax, which excludes acquisition costs, negative goodwill, and integration-related expenditures, was $1.1 billion.

Negative goodwill is the fair market value of assets acquired as part of a merger that is higher than the acquisition price. 

“Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history,” UBS CEO Sergio Ermotti said in a statement.

UBS announced a $29 billion net profit that was attributable to shareholders.

The enormous one-time gain that results from the purchase expenses being far lower than Credit Suisse's valuation is what led to the big profit. It was a little under the $33.45 billion expectation figure from a UBS survey.

$44.6 billion in net asset outflows were recorded by Credit Suisse during the quarter. The net new money recorded by UBS's worldwide wealth management was $16 billion, the most for the second quarter in more than a decade.

UBS increased its forecast of cost savings from the purchase from an earlier projection of $8 billion by 2027 to over $10 billion by the end of 2026.

The merged group's invested assets totaled $5.53 trillion, while Credit Suisse controlled 1.213 trillion Swiss francs worth of assets.

The number of employees at Credit Suisse decreased from 36,044 at the end of March to 33,968. The total headcount for UBS was 119,100.

On Thursday the group said Credit Suisse’s domestic banking unit will be fully integrated into UBS with a merging of legal entities expected to close in 2024. Ermotti said the bank’s analysis had determined that this is “the best outcome for UBS, our stakeholders and the Swiss economy.”