UBS likely to shrink Credit Suisse’s $10 billion shipping portfolio, report Ship’s crew

March 22 (Reuters) – UBS Group AG is expected to downsize Credit Suisse Group’s $10 billion shipping portfolio it inherited as part of its emergency takeover on Sunday, the Wall Street Journal reported on Wednesday.

UBS could also try to sell the portfolio but could prompt the owners to move their accounts elsewhere, the WSJ reported, citing people familiar with the matter.

About half of the shipping portfolio is for Greek shipowners, who use their deposits in the bank’s asset management arm as collateral to finance new ships, the report added.

“Our wealth management business in Greece is an integral part of our strategy in the Europe region and we are looking to grow, having recently announced a new market leader to support those ambitions,” UBS said in a statement emailed to Reuters.

Credit Suisse did not immediately respond to a request for comment.

Swiss authorities announced last week that UBS had agreed to buy its competitor Credit Suisse in a merger aimed at stemming a crisis of confidence spreading in global banking.

(Reporting by Jyoti Narayan and Anirudh Saligrama in Bengaluru; Editing by William Maclean, Kirsten Donovan and Richard Chang)

(c) Copyright Thomson Reuters 2023.

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