Folding Credit Suisse into UBS is not the end of the sustainability and digitalization efforts close to the heart of outgoing CEO Ralph Hamers.
At UBS's annual general meeting today in Basel, chairman Colm Kelleher said «Credit Suisse will no longer be an independent company. It was an icon of the Swiss economy, a bank that played a vital role in the economic development of Switzerland, and a global and respected player. We recognize and honor Credit Suisse’s achievements over its 167-year history.»
A New Beginning
In his prepared remarks, Kelleher went on to say that today also marks a new beginning for UBS and the Swiss financial industry after UBS absorbed Credit Suisse on March 19. The combined entity was created at the behest of the federal government, the Swiss National Bank (SNB), and the Swiss Financial Market Supervisory Authority (Finma).
The fusion offers «huge opportunities ahead for the combined bank and for the Swiss financial center as a whole. Under the leadership of the incoming CEO Sergio Ermotti, we will build on the strengths of both firms,» Kelleher said.
Kelleher repeated that UBS's «growth ambitions are centered on wealth and asset management. This is a business we know well, and which benefits from our Swiss heritage and expertise. It’s also a business with relatively low risks. It will continue to be our key focus for growth.»
First of Its Kind
The project is the first of its kind, where two globally systemically important banks are being merged. For it to be successful, «having a clear vision and sound strategy is important,» Kelleher said and is aware of the challenges ahead.
«This is not in any way an easy deal to do and brings with it significant execution risk. The main focus of the board of directors and the management will now be on the integration of Credit Suisse. And this is what has led to our decision to name Sergio as Group CEO for the upcoming journey,» he said.
A Nod to Hamers
Perhaps to take the sting out ousting Hamers as CEO, a man for whom promoting an agile working environment and seeking «Purpose» for the bank, Kelleher said such initiatives are not dead.
«The integration of Credit Suisse does not mean that other growth initiatives and our efforts in digitalization and sustainability will come to a standstill. Equally, risk management and control, including operational resilience, conduct and prevention of financial crime, remain key focus areas of the board of directors,» its chairman said.
