The incoming CEO of UBS, Sergio Ermotti, has addressed concerns about the size of the new Swiss bank formed by its takeover of Credit Suisse. While critics have expressed worries over the forced deal, which is intended to help ensure global financial stability, Ermotti is confident that the combined bank will be successful.
Addressing Worries Over the Size of the New Bank
As a result of the merger, the new bank will have more than 120,000 staff and $1.6 trillion in assets. However, Ermotti has stated that even with UBS and Credit Suisse combined, the bank won’t be at the top of the classification for international banks in terms of size. He went on to reassure stakeholders that the issue of excessive size does not arise, citing the bank’s critical mass at a global level as an advantage.
Today, our Board of Directors announced that Sergio Ermotti will succeed Ralph Hamers as UBS Group Chief Executive Officer, effective 5 April 2023.
Read the media release here: https://t.co/NC0hwJOHLv pic.twitter.com/48JmarWHfY— UBS (@UBS) March 29, 2023
Maintaining a Successful Strategy
Ermotti emphasized that the combined bank will follow the successful UBS strategy, which centers on wealth management activity and the containment of investment banking and its related risks. He is confident that the new bank will maintain its position thanks to its activities.
Switzerland’s Concerns
The Swiss public and politicians have voiced concerns about the level of state support for the banks, with the government and Swiss National Bank offering nearly 260 billion Swiss francs ($284 billion) in liquidity and guarantees. Ermotti believes that the guarantees from the National Bank and Confederation are reasonable when considering the full framework for the acquisition.
Despite concerns expressed by some stakeholders, the incoming CEO of UBS is confident that the Credit Suisse takeover will result in a successful new Swiss bank. By reassuring stakeholders and highlighting the advantages of the merger, Ermotti has helped to ease worries about the deal.
