- UBS Group AG is bringing again Sergio Ermotti as CEO to steer its acquisition of Credit score Suisse.
- Sergio Ermotti’s return faces challenges equivalent to workforce cuts, downsizing of the funding financial institution and rebuilding investor confidence.
- The appointment of the brand new CEO despatched UBS shares up 2.3 p.c, weeks after the Credit score Suisse acquisition.
Sergio Ermotti has been introduced again as CEO of UBS Group AG ( UBSG.S ) to steer a serious acquisition of Credit score Suisse ( CSGN.S ), sources mentioned. The shock resolution goals to capitalize on his expertise in restructuring the financial institution after the worldwide monetary disaster.
As CEO of UBS Group AG, Sergio Ermotti will face a number of rapid challenges, together with workforce cuts that may have an effect on hundreds of workers and cuts at Credit score Suisse’s funding financial institution. As well as, he might want to restore the arrogance of these with a vested curiosity and make sure that UBS stays their most well-liked funding vacation spot.
From April 5 present Swiss Re ( SRENH.S ) chairman Ermotti will take over. Ermotti beforehand served as CEO of UBS from 2011 to 2020. After his appointment was introduced, pre-market exercise on the Zurich Inventory Alternate noticed UBS shares rise 2.3%.
Ermotti may even take the reins simply weeks after UBS purchased Swiss financial institution Credit score Suisse, a shock merger orchestrated by Swiss authorities to cut back volatility after Credit score Suisse’s struggles.
The acquisition of Credit score Suisse made UBS the one Swiss world financial institution backed by roughly 260 billion euros. francs ($170 billion) in authorities loans and ensures. The transfer will increase the dependence of the Swiss economic system on a single lender.
Andreas Venditti, an analyst at Vontobel, commented that Ermotti’s expertise in downsizing UBS’s funding financial institution after the monetary disaster greater than a decade in the past ready him nicely for this new function.
In the meantime, present UBS CEO Ralph Hamers was absent when the takeover was introduced and agreed to resign to serve the pursuits of the brand new mixture, the Swiss monetary sector and the nation. The board’s selections had been made in gentle of the brand new challenges and priorities that UBS will face after the acquisition.
