UPDATE 1-UBS to absorb Credit Suisse’s domestic bank, eyes $10 bln in cost savings

UBS Group said on Thursday it would fully absorb Credit Suisse's domestic bank – a decision that comes despite a likely backlash in Switzerland where it could result in the loss of thousands of jobs. UBS could have spun off the business and floated it in an IPO but the domestic bank has been a solid profit-maker for Credit Suisse and last year it was the only division in the black. "Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders and the Swiss economy," Chief Executive Sergio Ermotti said in a statement.