UBS has tapped Sergio Ermotti as its new Group CEO and president of its executive board.
Sergio Ermotti is returning to UBS following its forced takeover of Credit Suisse, taking over the CEO reins from Ralph Hamers on April 5, according to a statement from UBS Wednesday morning. Ermotti also becomes the president of the group's executive board.
The current CEO, Ralph Hamers, agreed to step down «to serve the interests of the new combination, the Swiss financial sector and the country,» the statement added. He will remain in an advisory capacity At the same time, Ermotti will step down as chairman of Swiss Re after the company's annual general meeting, it was further learned. Jacques de Vaucleroy, designated Vice Chairman, will lead the transition phase and succession planning.
Ermotti, who is from Ticino, had already been CEO of UBS from 2011 to 2020, initially on an interim basis and definitively from mid-November 2011.
Transforming the Investment Bank
As part of the takeover, the combined investment banking operations account for no more than 25 percent of risk-weighted assets on UBS's balance sheet.
Notably, the statement from UBS points out that during his previous tenure as UBS CEO, Ermotti «swiftly transformed the investment bank by cutting its footprint and achieved a profound culture change within the bank which allowed it to regain the trust of clients and other stakeholders while restoring people’s pride in working for UBS.»
Prophetic Words
In September of last year, Ermotti said that while it was nice that Switzerland had two large banks, the economic benefits of such a model were limited, as finews.com reported. Prophetic words indeed.
Instead of two large banks, it was more important for the Swiss financial sector to be diversified. He also questioned whether Switzerland needs 24 cantonal banks. The cantonal banks, Raiffeisen cooperative banks, and regional banks have grown enormously in recent years, he said. «I am conscious of the uncertainty many feel and I promise that, together with my colleagues, our full attention will be on delivering the best possible outcome for our clients, our employees, our shareholders and the Swiss government,» Ermotti said.
