WSJ: UBS likely to shrink Credit Suisse’s $10 bln shipping portfolio

UBS Group AG will likely shrink Credit Suisse Group’s $10 billion shipping portfolio that 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 doing so could prompt owners to move their accounts elsewhere, the WSJ reported, citing people familiar with the matter.

About half of the shipping portfolio involves Greek ship owners that use their deposits in the bank’s wealth 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 one we are looking to grow, having recently announced a new market head to support those ambitions,” UBS said in an emailed statement 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 rival Credit Suisse in a merger aimed at containing a crisis of confidence that was spreading through global banking.

[Reuters]