UBS had reported a US$29 billion annual profit in February due to the difference between the value of the assets obtained in the Credit Suisse deal and the discount price of US$3.25 billion it paid for the country’s second biggest bank.

In its annual results published on Thursday, UBS said the fair-value estimate has been adjusted by US$1.2 billion, decreasing the “negative goodwill” — or bargain purchase — to US$27.7 billion.

This led UBS to revise its 2023 net profit to US$27.8 billion.

UBS was strong armed by the Swiss government to buy Credit Suisse last year over concerns that its troubled rival might go bankrupt and spark a global financial crisis.

UBS brought back Sergio Ermotti, who led the bank between 2011 and 2020, to take the helm as chief executive and oversee the complex absorption of Credit Suisse.

Ermotti was paid 14.4 million Swiss francs (US$15.9 million) between his return in April 2023 and December that year, according to the annual report.