The largest Swiss bank UBS brings Sergio Ermotti back to the top of the group. He will thus head the new bank after the planned takeover of Credit Suisse. The step was justified on Wednesday with the challenges of the merger. Incumbent Ralph Hamers has agreed to step down in the interests of the merger, the Swiss financial sector and the country, UBS said. Shares were up more than 2 percent in premarket trading.
Ermotti will take the helm after the UBS shareholders’ meeting on Wednesday next week. Hamers will continue to provide advice during a transition phase to ensure a successful conclusion of the transaction and a smooth handover. Ermotti will give up his post as chief supervisor at Zurich reinsurer Swiss Re.
In November 2020, Dutchman Hamers followed Swiss Ermotti, who had headed UBS for nine years. Ermotti successfully repositioned the bank after the financial crisis by focusing on wealth management, the statement said. He reduced investment banking and brought about a cultural change in the bank.
Biggest bank merger in Europe in years
Thanks to this experience and his deep knowledge of the financial sector, Ermotti is ideally suited to implement the integration of Credit Suisse. Ermotti himself said the task ahead was urgent and challenging. He knows about the insecurity. However, he promises to focus fully on achieving the best outcome for customers, employees, shareholders and the Swiss government.
A takeover of Credit Suisse by UBS is the largest banking merger in Europe since the financial crisis 15 years ago. It means the end for the 167-year-old Credit Suisse, whose headquarters are across from its bitter rival UBS on Zurich’s Paradeplatz. The crisis-ridden Credit Suisse is one of the world’s largest wealth managers and is one of the 30 global systemically important banks whose failure would shake the international financial system.
