UBS to cut 3,000 jobs after Credit Suisse takeover

Thousands of jobs will be cut as UBS absorbs Credit Suisse, in a takeover that is reshaping Swiss banking.

UBS Group reported a $29.3bn (£22.8bn) profit between April and June, in its first results since it bought its struggling rival.

The bumper profit, compared to $2.6bn in the same period last year, reflects a one-off boost from Credit Suisse.

But the merged bank will shed 3,000 staff in the coming years as it aims to cut costs by more than $10bn.

UBS rescued Credit Suisse for $3.25bn in March, following heavy pressure from authorities who feared Switzerland's second largest bank would go under after clients began withdrawing money.

Credit Suisse had faced a litany of problems and banking failures in the US dealt a final blow to confidence, forcing it to seek a buyer.

UBS has announced it plans to fully absorb Credit Suisse's domestic bank operation, which made a profit last year, rather than spinning it off as a separate entity.

"Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders and the Swiss economy," chief executive Sergio Ermotti said in a statement."

The integration will take place next year, with full migration of clients set to be completed in 2025, he added.