UBS Hit by Old Toxic Debt Costs Ahead of ‘Hard’ Credit Suisse Task

UBS said on Tuesday it had set aside more money to draw a line under its involvement in toxic U.S. mortgages, halving its first-quarter profit as the bank girds itself for the “hard” task of swallowing fallen rival Credit Suisse. Sergio Ermotti, brought back as UBS chief executive to steer the takeover, said it aims to close the deal with fellow Zurich-based bank Credit Suisse by May but warned that it could take four years for a full integration. Meanwhile, the Herculean task of absorbing Credit Suisse includes dealing with a backlash against the deal at home, where thousands of jobs cuts are feared.