Paragon Bank set to cash in on rate rises

CHRIS DORRELL

PARAGON Bank is set to post another strong set of results this week as analysts expect the lender to benefit from rising interest rates.

report said, citing people familiar with the matter whom the newspaper did not name.

UBS, which agreed in March to take over its smaller rival as part of a rescue orchestrated by Swiss authorities, has said it aims to close the deal quickly.

Chief executive Sergio Ermotti last week warned of painful decisions about job cuts following the takeover which he said he hoped would be formalised in the coming days.

UBS has said previously that it is set to make a $35bn (£28bn) gain from the takeover. This is much lower than was originally forecast, however, as it warned that it will take a $17bn hit from costs related to asset write-downs and litigation provisions.

Reuters