Ermotti succeeds Ralph Hamers from the Netherlands, who, according to UBS, has agreed to “resign in the interests of the new combination, the Swiss financial sector and the country”. According to UBS, Hamer will remain at the bank and will advise Ermotti during a transition phase. The Swiss Ermotti was already CEO of UBS from 2011 to 2020. He is currently Chairman of the Board of Directors at Swiss Re.
With the change of boss, “everything is different again”, according to the Scheizer newspaper “Blick”. This was reminiscent of statements by UBS that Hamers would remain head of the bank.
Thanks for “record results”
UBS President Colm Kelleher thanked Hamers “for his understanding of the current situation and his willingness to step down.” The acquisition of CS will support the UBS strategy, but will also set new priorities. “I am very confident that Sergio, with his unique experience, will successfully complete the integration that is so important for customers, employees and investors of both banks and for Switzerland.”
Hamers’ “outstanding management work” has “led to record results” at UBS in recent years – the outgoing boss also played a “decisive role in bringing about the takeover of Credit Suisse,” said the UBS board of directors on Tuesday.
Takeover as “best solution”
The takeover of the country’s second largest bank by the country’s largest bank was decided after a plunge in Credit Suisse shares ten days ago in a bailout orchestrated by the Swiss government. UBS takes over rival CS for three billion francs. In addition, it is responsible for losses of up to five billion francs. The deal will be supported with up to CHF 260 billion in government liquidity support and guarantees.
“The takeover by UBS is the best solution to restore confidence in Credit Suisse,” said Swiss President Alain Berset after the marathon of negotiations during which the CS merger was approved. According to the head of the Swiss National Bank (SNB), Thomas Jordan, action was imperative: “The bankruptcy of Credit Suisse would have had serious consequences for Swiss and international financial stability.”
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 opposite UBS on Zurich’s Paradeplatz. The crisis-plagued Credit Suisse is one of the world’s largest asset managers and is one of the 30 banks classified as globally systemically important.
