MILAN (Reuters) – Shares in UBS hit their highest level since October 2008 on Thursday, extending a strong run that has put the Swiss bank well ahead of its European rivals following the takeover in March of its struggling rival Credit Suisse.
UBS rallied more than 6% early in Zurich, set for its biggest one-day gain since March, after the group said it would fully absorb Credit Suisse’s domestic bank and that it was increasing its ambitions for cost savings to over $10 billion.
“Clearly the group remains a construction site in the near term, however we believe this set of results and announcements should give confidence in the mid-term bull case,” said Deutsche Bank analysts in a note.
The stock has risen 36% so far in 2023 against a 13.5% gain for the broader European banking index.
(This story has been refiled to change the dateline to Aug. 31, and not Aug. 30)
(Reporting by Danilo Masoni; Editing by Amanda Cooper and David Goodman)