Apr 1, 2023
UBS-Credit Suisse Combination Not Too Large, Ermotti Tells Sole
(Bloomberg) -- Sergio Ermotti, incoming chief executive officer of UBS Group AG, brushed off concerns about the bank’s size after its combination with Credit Suisse Group AG.
“Even putting together UBS and Credit Suisse, we won’t be at the top of the ranking by size of international banking groups,” Ermotti told the Italian newspaper Il Sole 24 Ore. “The question of excessive size from this point of view does not arise.”
UBS agreed to buy Credit Suisse last month in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.
Ermotti will return as CEO to oversee the historic acquisition, replacing Ralph Hamers and taking up his post on April 5. The Swiss banker, who served in the same position from 2014 to 2020, has extensive restructuring experience.
Read more: Ermotti’s Second Stint at UBS Comes With a Sense of Déjà Vu
On the domestic front, the new, combined group will have market share that’s no higher than that of cantonal lenders or Raiffeisen Group, he said, adding that the only segment in Switzerland where it will have a prominent position is credit to multinational corporations. There, it will face international competition, Ermotti said.
Ermotti said he believes the new entity’s business model should be similar to the current one of UBS, citing the central role of wealth management and “the containment of investment banking activities and related risks.”
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