UBS is expecting an increase in loan defaults for its business in Switzerland, with loan loss provisions of approximately 150 million Swiss francs projected for the fourth quarter of 2024.

This forecast is influenced by the economic slowdown in Germany, which is impacting Swiss companies involved in export-import activities. Despite a satisfactory macroeconomic environment in Switzerland, the weakening of surrounding eurozone economies is expected to affect credit losses.

UBS Chief Financial Officer Todd Tuckner mentioned that sluggish growth in Germany typically leads to higher credit losses for Swiss firms. Furthermore, the integration of Credit Suisse is contributing to the bank's outlook, with credit loss costs for former Credit Suisse clients estimated to be five to six times higher than those for UBS clients.