[1/2] A brand of Swiss financial institution UBS is seen in Zurich, Switzerland March 29, 2023. REUTERS/Denis Balibouse
ZURICH, Might 9 (Reuters) – UBS Group (UBSG.S) mentioned on Tuesday that Credit score Suisse CEO Ulrich Koerner will keep on after the takeover of its Swiss rival as a part of a brand new management workforce of the mixed group.
Saying its management reshuffle, UBS additionally promoted Todd Tuckner, now finance chief of its core wealth administration enterprise, to group chief monetary officer, succeeding Sarah Youngwood who determined to depart as soon as the deal closes after a yr within the job.
UBS is taking on Credit score Suisse (CSGN.S) as a part of a Swiss government-orchestrated rescue backed by as a lot as 250 billion Swiss francs ($281.25 billion) of state help after current banking sector turmoil introduced the nation’s No. 2 lender to the brink of collapse.
Apart from Koerner, who spent over a decade at UBS earlier than returning to Credit score Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling collectively his new workforce. Some media had speculated that numerous Credit score Suisse bankers would take up senior roles on the new group.
“The brand new management workforce underneath CEO Sergio Ermotti clearly displays the truth that UBS takes over CS. There are fewer adjustments than anticipated,” Vontobel analyst Andreas Venditti mentioned in a be aware.
Commenting on Koerner’s future function, UBS mentioned Koerner can be liable for Credit score Suisse’s operational continuity and consumer focus, whereas supporting its integration. Credit score Suisse government board members will report back to each their related UBS government board member and Koerner.
It’s unclear whether or not he’ll keep on after the mixing is accomplished.
Consideration now shifts to UBS’s strategic plans for the mixed financial institution.
UBS reiterated that it’s going to consider all choices for Credit score Suisse’s Swiss enterprise – which at present contains wealth administration, industrial and funding banking – and can “talk additional on this matter within the coming months.”
An individual accustomed to the matter mentioned a call on the Swiss unit’s future was more likely to be taken by the top of the summer season. UBS must act quick on condition that Credit score Suisse is structurally loss making, mentioned the particular person, who declined to be named as a result of the discussions had been non-public.
Reuters reported final week that choices into account for that enterprise embrace a sale or an preliminary public providing of Credit score Suisse’s home unit.
Ermotti returned to UBS in April to steer the most important banking deal for the reason that international monetary disaster, involving Switzerland’s two greatest banks using round 120,000 individuals worldwide.
“It is a pivotal second for UBS, Credit score Suisse and your entire banking trade,” Ermotti mentioned within the assertion. “Collectively we’ll solidify and characterize the Swiss mannequin for finance world wide, one that’s capital-light, much less reliant on taking danger and anchored by stability and high-touch service.”
UBS mentioned that following the authorized closing of the transaction, which it anticipated within the coming weeks, UBS Group AG would handle two separate dad or mum firms – UBS AG and Credit score Suisse AG – all through the mixing course of it has mentioned might take three to 4 years.
Throughout that point, every establishment will proceed to have its personal subsidiaries and branches, serve its shoppers and take care of counterparties.
Zuercher Kantonalbank mentioned this meant there can be initially no massive adjustments for the present Credit score Suisse administration.
“We assume that by means of such method larger disruptions might be averted. Nevertheless the job uncertainty for the present CS managers will stay,” the financial institution mentioned in its every day remark.
Tuckner, who joined UBS in 2004 from KPMG in New York, has held varied management roles throughout finance in the USA and Switzerland, UBS mentioned.
It additionally mentioned Michelle Bereaux, who has been with UBS since 1998, will turn out to be group integration officer, whereas a number of prime UBS managers will retain their jobs.
* Iqbal Khan will stay head of worldwide wealth administration
* Rob Karofsky stays on as president of funding banking
* Sabine Keller-Busse stays president of UBS Switzerland.
($1 = 0.8889 Swiss francs)
Reporting by Tomasz Janowski; Modifying by Himani Sarkar
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