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UBS Group AG expects a financial hit of about $17 billion from the takeover of Credit Suisse Group AG, the bank said in a regulatory presentation as it prepares to complete the rescue of its struggling Swiss rival.

UBS estimates a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities.

It also sees $4 billion in potential litigation and regulatory costs stemming from outflows.

UBS, however, also estimated it would book a one-off gain stemming from the so-called “negative goodwill” of $34.8 billion by buying Credit Suisse for a fraction of its book value.

The financial cushion will help absorb potential losses and could result in a boost to the lender’s second-quarter profit if UBS closes the transaction next month as planned.

UBS said the estimates were preliminary and the numbers could change materially later on.

It also said it might book restructuring provisions after that, but offered no numbers. Union Bank of Switzerland said it estimates a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities. AFP via Getty Images

“The financial information lacks an estimate of restructuring provisions as these will be booked after the transaction closes,” Vontobel analyst Andreas Venditti said in a note.

Analysts at Jefferies have estimated restructuring costs, litigation provisions and the planned winding down of the non-core unit could total $28 billion.

Meanwhile, UBS has implemented a number of restrictions on Credit Suisse while the takeover is underway.

In certain cases, Credit Suisse cannot grant a new credit facility or credit line exceeding $113 million to investment-grade borrowers or more than 50 million francs to non-investment-grade borrowers, a UBS filing showed. Union Bank of Switzerland implemented a number of restrictions on Credit Suisse while the takeover is underway.Getty Images

“Credit Suisse obviously found itself in a problem because of lapses in its risk controls and I think just setting these parameters on the ability or standards to lend out is not very unreasonable,” said Benjamin Quinlan, Hong Kong-based chief executive of financial consultancy firm Quinlan & Associates

“Ultimately, from UBS’ perspective, they will have to wear these risks on their books.”

Credit Suisse also cannot undertake capital expenses of more than 10 million francs as part of the restrictions or enter into certain contracts worth more than 3 million francs per year.

The filing shows Credit Suisse cannot order any “material amendments” to its employee terms and conditions, including remuneration and pension entitlements, till deal closure.

The restrictions “will cause certain clients to leave Credit Suisse” but may not accelerate the pace of outflows already seen, said Quinlan, following UBS’ statement last week that Credit Suisse had already stemmed asset outflows. RUSHED INTO DEAL

UBS said it was rushed into the deal and had less than four days to complete due diligence given the ’emergency circumstances’ as Credit Suisse’s financial health worsened. The filing shows Credit Suisse cannot order any “material amendments” to its employee terms and conditions. AFP via Getty Images

UBS agreed in March to buy Credit Suisse for $3.4 billion in stock and to assume up to 5 billion francs in losses that would stem from winding down part of the business, in a shotgun merger engineered by Swiss authorities over a weekend amid a global banking turmoil. Start your day with all you need to know

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The deal, the first rescue of a global bank since the 2008 financial crisis, will create a wealth manager with more than $5 trillion in invested assets and over 120,000 employees globally.

The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds.

Switzerland’s government is providing a guarantee of up to 9 billion francs for further potential losses on a clearly defined part of Credit Suisse portfolio.

UBS signaled no quick turnaround for the 167-year-old Credit Suisse, which came to the brink of collapse during the recent banking sector turmoil after years of scandals and losses.

It said it expected both the Credit Suisse group and its investment bank to report substantial pre-tax losses in the second quarter and the whole of this year.

Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies UBS AG and Credit Suisse AG, UBS said last week.

It has said the integration process could take three to four years.

During that time, each institution will continue to have its own subsidiaries and branches, serve its clients and deal with counter-parties.

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Entertainment

IT Crowd’s Chris O’Dowd on aliens, returning to a ‘broke’ and ‘down’ London, and his new show Small Town, Big Story

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IT Crowd's Chris O'Dowd on aliens, returning to a 'broke' and 'down' London, and his new show Small Town, Big Story

Actor and comedian Chris O’Dowd has described moving back to London from the US, finding people in the city are “down” after a decade of cutbacks.

The IT Crowd star returned to London from Los Angeles with his wife Dawn O’Porter and their two children a year ago.

“It’s just gone through 10 years of austerity, and you can feel it off it,” he told Sky News.

“People are down, is the impression I’m getting. I don’t know if it’s because of the divisive political culture or whether it’s because people are broke as s**t because they haven’t put any money into public services for so long, and now they’ve said they’re not going to do it either because they’re not going to raise taxes, so I don’t know what they’re going to do. But everybody is… it would be hard to say it’s improved.”

Asked if he sensed any optimism that things would change for the better, he replied: “Not yet.”

O’Dowd said the decision to return to the UK “wasn’t because Trump got in or any of that crap”, but that he wanted to “get out before the political cycle starts, because it just gets a bit heated”. He added: “It actually didn’t this time, because he won so easily.”

The Irish star was speaking ahead of the premiere of his new Sky Original series Small Town, Big Story, which comes to Sky and NOW on Thursday 27 February.

Chris O'Dowd and Christina Hendricks in Small Town, Big Story
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Chris O’Dowd and Christina Hendricks in Small Town, Big Story

Set in the fictional Irish border village of Drumban, the dramatic comedy follows Wendy Patterson, portrayed by Mad Men’s Christina Hendricks, a local girl who found success as a TV producer in Los Angeles. She returns with a film crew in tow and is forced to confront a secret from decades ago – visitors from outer space.

So does the show’s creator believe in alien existence?

“I find it hard to believe we’re it, we’re just too imperfect,” O’Dowd replied. He hails from Boyle, County Roscommon, which is considered a “UFO hotspot” in Ireland.

“In the vastness of the universe, or the multiverse or whatever we’re existing within, it seems highly unlikely that you and me are the best we can do, no offence,” he added.

The cast of Small Town, Big Story
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The cast of Small Town, Big Story

Patterson’s show-within-a-show, titled I Am Celt but described as Lame Of Thrones, appears to satirise Hollywood’s often inaccurate portrayal of Ireland.

“Some of them can be heavy-handed, or a little bit off-piste,” laughs O’Dowd. “I think the thing to remember is we’re guilty of it too.

“Whenever I hear Americans being depicted from Irish people, very often they’re stuffing themselves with cheeseburgers and they’re morons. There’s got to be a bit of give and take with that.”

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World

Pope in critical condition and receiving blood transfusions after respiratory crisis, Vatican says

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Pope in critical condition and receiving blood transfusions after respiratory crisis, Vatican says

Pope Francis is in a critical condition after a “prolonged respiratory crisis” that required a high-flow of oxygen and is “suffering more than yesterday”, the Vatican has said.

The 88-year-old has been in hospital for more than a week being treated for double pneumonia and chronic bronchitis.

In an update on Saturday evening, the Vatican said “the Holy Father’s condition continues to be critical”, adding that this morning he “presented with a prolonged asthmatic respiratory crisis” which required the application of high-flow oxygen.

He also had blood transfusions after tests revealed thrombocytopenia, which is associated with anaemia.

“The Holy Father continues to be vigilant and spent the day in an armchair even though he was suffering more than yesterday. At the moment the prognosis is reserved,” the Vatican’s statement said.

In an update earlier on Saturday morning – the shortest since Francis was admitted to hospital on 14 February – the Vatican said he will not lead Sunday prayers for the second week running, adding: “The Pope rested well.”

Francis is likely to prepare a written homily for someone else to read at Sunday’s Angelus.

More on Pope Francis

Pope Francis delivers his blessing during his weekly general audience in the Pope Paul VI hall at the Vatican, Wednesday, Feb. 5, 2025. (AP Photo/Andrew Medichini)
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The Pope before entering hospital. Pic: AP

Millions of people around the world have been concerned about the Pope’s increasingly frail health – and his condition has given rise to speculation over a possible resignation, which the Vatican has not commented on.

Doctors on Friday said he was “not out of danger” and was expected to remain at Rome’s Gemelli hospital for at least another week.

Sergio Alfieri, the chief of the pontiff’s medical team, said: “Is he out of danger? No. But if the question is ‘is he in danger of death’, the answer is ‘no’.”

Sergio Alfieri (R) said Pope Francis was a 'fragile patient' but was in 'good spirits'. Pic: AP
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Sergio Alfieri (R) said Pope Francis was a ‘fragile patient’ but was in ‘good spirits’. Pic: AP

He said Francis was affected by seasonal flu before being taken to hospital and that, “due to his challenging duties”, he had suffered fatigue.

He is also fighting a multipronged infection of bacteria and viruses in the respiratory tract.

Read more from Sky News:
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Body of Israeli hostage Shiri Bibas returned

A woman places a rosary at the statue of the late Pope John Paul II outside Gemelli Hospital, where Pope Francis is admitted for treatment, in Rome, Italy
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A woman places a rosary at the statue of the late Pope John Paul II outside Rome’s Gemelli Hospital, where Pope Francis is being treated. Pic AP

The doctors warned that while he did not have sepsis – where germs enter the bloodstream – there was always a risk the infection could spread in his body, and they said that was the biggest concern.

Sepsis is a complication of an infection that can lead to organ failure and death.

Pope Francis has a history of respiratory illness, having lost part of one of his lungs to pleurisy as a young man. He had an acute case of pneumonia in 2023.

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World

Israel postpones release of more than 600 Palestinian prisoners after ‘humiliating hostage ceremonies’

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Israel postpones release of more than 600 Palestinian prisoners after 'humiliating hostage ceremonies'

The release of more than 600 Palestinian prisoners planned for Saturday has been postponed “until the release of the next hostages is secured without humiliating ceremonies”, Israel has said.

In a statement early on Sunday, Prime Minister Benjamin Netanyahu‘s office accused the Palestinian militant group Hamas of “repeated violations” as it lashed out at “disgraceful ceremonies” during the handover of Israeli captives in Gaza.

The Israeli PM’s office said: “In light of the repeated and ongoing violations by Hamas – including the disgraceful ceremonies that dishonour the dignity of our abductees and the cynical use of captives for propaganda purposes – it has been decided to postpone the release of the terrorists that was planned for yesterday until the release of the next group of abductees is secured, and without the humiliating ceremonies.”

The statement came as vehicles apparently carrying prisoners left the open gates of Ofer prison in the occupied West Bank, only to turn around and go back in.

Israeli forces at Ofer prison in the West Bank
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Israeli forces at Ofer prison in the West Bank

The release of 620 Palestinian prisoners had been delayed for several hours and was meant to happen after six Israeli hostages were released on Saturday.

Five of the six captives were escorted by masked, armed militants in front of crowds – displays that the United Nations and others have criticised as cruel after previous handovers.

The final hostage was released to the Red Cross in private.

The Gaza ceasefire deal continues to hold, despite tensions rising earlier in the week when Hamas initially handed over the body of an unidentified Palestinian woman instead of Israeli mother-of-two Shiri Bibas.

The hostage-prisoner exchange earmarked for Saturday was supposed to be the last for the first phase of the ceasefire.

Israel had been expected to free hundreds of Palestinian prisoners on Saturday, including a man who has been detained for more than 40 years, and many more given life sentences.

However, as night fell across the region, they remained behind bars, with Hamas claiming their release had been delayed because some of them had been “assaulted”.

An Israeli spokesperson has denied the assaults and said the Red Cross were present at the prison.

Follow latest: Delay to prisoner release due to ‘assaults’ – Hamas

The first of six hostages to be released
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Tal Shoham was released on Saturday

Who are the freed Israeli hostages?

The first two hostages released on Saturday were Tal Shoham and Avera Mengistu.

Mr Shoham, 40, was visiting his wife’s family in Kibbutz Be’eri when Hamas militants stormed into the community during the October 7 attacks in 2023.

His wife, two young children and three other relatives were also abducted, but they were freed in an exchange in November 2023.

Abra Mengistu in the emotional meeting with his family at the initial absorption point in Israel.. Pics IDF
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Abra Mengistu hugs his family in Israel after his release. Pic: IDF

Mr Mengistu, a 39-year-old Ethiopian-Israeli, had been held in Gaza since he entered the territory on his own in 2014.

Watching the moment he was freed on TV, his family broke out in song as he walked free for the first time in more than a decade.

Later on Saturday, Eliya Cohen, Omer Shem Tov and Omer Wenkert were handed over to the Red Cross in Nuseirat, central Gaza.

Omer Shem Tov, a hostage held in Gaza since the deadly October 7, 2023 attack, is released as part of a ceasefire and a hostages-prisoners swap deal between Hamas and Israel, in Nuseirat, central Gaza Strip, February 22, 2025. REUTERS/Ramadan Abed
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Omer Shem Tov, a hostage held in Gaza since October 2023, pictured as he is released. Pic: Reuters

Mr Shem Tov, 22, was taken during the October 7 attacks on the Nova music festival.

The computer programmer had shared his live location with his family, who eventually noticed he was headed towards Gaza and contact with him was lost.

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Hostage reunited with parents

Mr Cohen, 27, was also taken from the Nova festival, alongside his fiancee.

Released hostages have said that he was kept in chains and deprived of food and sunlight during his time in captivity, according to reports.

Mr Wenkert, 23, was taken from Nova. He suffers from colitis and requires special medical care, it has been reported.

Finally, Hisham al Sayed, 28, was handed over in a private ceremony.

The Bedouin-Israeli, from the village of Hura in the Negev desert, has been a captive since he crossed into Gaza in 2015.

Nael Barghouti during his wedding celebrations in the West Bank village of Kobar, near Ramallah November 17, 2011. File pic: Reuters
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Nael Barghouti pictured in 2011. Pic: Reuters

Who were the Palestinian prisoners due to be released?

More than 600 Palestinian prisoners had been set to be released on Saturday.

According to the prisons office, which is run by Hamas, they included 50 who had been sentenced to life imprisonment, 60 described as having “high” sentences, 47 prisoners from the “Wafa al Ahrar” 2011 prisoner exchange deal who had since been re-arrested, and 445 who were arrested after 7 October attacks.

The “Wafa al-Ahrar” deal was the 2011 prisoner exchange agreement that saw the release of captured Israeli soldier Gilad Shalit in exchange for 1027 Palestinian prisoners.

Read more:
Body of Shiri Bibas returned, family confirms
Fragile Gaza ceasefire stumbles from one hurdle to next

Among the most high-profile Palestinians who had been set to be released was Nael Barghouti – the longest-serving prisoner, who has been inside for 43 years.

Also on the list were several journalists, many of whom covered events at al Shifa hospital, and Yousef al Mansi, a Palestinian minister in Gaza.

It had been expected that Dr Hussam Abu Safiya, the director of Kamal Adwan Hospital in Gaza, would be among those being released on Saturday.

However it later emerged that he was not on the list of those set to be freed.

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