MILAN, Aug 31 Reuters Shares in UBS hit their highest level since October 2008 on Thursday, extending a strong run that has put the Swiss bank well ahead of its European rivals following the takeover in March of its struggling rival Credit Suisse.

UBS rallied more than 6 early in Zurich, set for its biggest oneday gain since March, after the group said it would fully absorb Credit Suisse39;s domestic bank and that it was increasing its ambitions for cost savings to over 10 billion.

Clearly the group remains a construction site in the near term, however we believe this set of results and announcements should give confidence in the midterm bull case, said Deutsche Bank analysts in a note.

The stock has risen 36 so far in 2023 against a 13.5 gain for the broader European banking index.

Reporting by Danilo Masoni Editing by Amanda Cooper and David Goodman

Source Reuters