UBS Group mentioned on Tuesday that Credit Suisse CEO Ulrich Koerner would keep on after the takeover of its Swiss rival as a part of a brand new management crew of the mixed group.
Announcing its management reshuffle, UBS additionally promoted Todd Tucker, now finance chief of its core asset administration business, to group chief monetary officer, succeeding Sarah Youngwood who determined to go away as soon as the deal closed after a 12 months within the job.
UBS is taking on Credit Suisse as a part of a Swiss government-orchestrated rescue backed by as a lot as 250 billion Swiss francs ($281.25 billion) of state assist after current banking sector turmoil introduced the nation’s No. 2 lender to the brink of collapse.
Besides Koerner, who spent over a decade at UBS earlier than returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives to tug collectively his new crew. Some media had speculated that a number of Credit Suisse bankers would take up senior roles on the new group.
“The new leadership team under CEO Sergio Ermotti reflects that UBS takes over CS (Credit Suisse) There are fewer changes than expected,” Vontobel analyst Andreas Venditti mentioned in a observe.
Commenting on Koerner’s future position, UBS mentioned Koerner could be chargeable for Credit Suisse’s operational continuity and shopper focus whereas supporting its integration. Credit Suisse govt board members and Koerner will report back to their related UBS govt board members.
It is unclear whether or not he’ll keep on after the combination is accomplished.
Attention now shifts to UBS’s strategic plans for the mixed financial institution.
UBS reiterated that it’ll consider all choices for Credit Suisse’s Swiss business – which at the moment includes wealth administration, industrial and funding banking – and can “communicate further on this matter in the coming months.”
An individual conversant in the matter mentioned a choice on the Swiss unit’s future would probably be taken by the top of the summer season. UBS must act quick on condition that Credit Suisse is structurally loss-making, mentioned the particular person, who declined to be named as a result of the discussions have been personal.
Reuters reported final week that choices into account for that business embrace a sale or an preliminary public providing of Credit Suisse’s home unit.
Ermotti returned to UBS in April to steer the most important banking deal because the international monetary disaster, involving Switzerland’s two greatest banks using round 120,000 individuals worldwide.
“This is a pivotal second for UBS, Credit Suisse and your entire banking business,” Ermotti said in the statement. “Together we’ll solidify and characterize the Swiss mannequin for finance around the globe, one that’s capital-light, much less reliant on taking dangers and anchored by stability and high-touch service.”
UBS mentioned that following the authorized closing of the transaction, which is anticipated within the coming weeks, UBS Group AG would handle two separate father or mother firms – UBS AG and Credit Suisse AG – all through the combination course of it has mentioned might take three to 4 years.
During that point, every establishment will proceed to have subsidiaries and branches, serve its shoppers and take care of counterparties.
Tuckner, who joined UBS in 2004 from KPMG in New York, has held numerous management roles throughout finance within the U.S. and Switzerland, UBS mentioned.
It additionally mentioned Michelle Bereaux, who has been with UBS since 1998, will turn into group integration officer, whereas a number of high UBS managers will retain their jobs.
Iqbal Khan will stay head of world wealth administration, Rob Karofsky will stay president of funding banking and Sabine Keller-Busse will stay president of UBS Switzerland.
Source: www.dailysabah.com
