UBS has been a net gainer in customer balances following the takeover of Credit Suisse, boosting its market position in the southern part of the Asia Pacific region.
UBS has been a net gainer from the takeover of Credit Suisse, according to chairman Colm Kelleher, underlining a reversal of conditions.
«I think the rot has stopped and we have clients coming back,» said a «Reuters» report citing Kelleher at a Wall Street Journal event in London. “[W]e've seen that UBS is a net gainer in its own right of balances and so on.»
Adding South APAC
Following the Credit Suisse acquisition, UBS is «undisputed number 1» in certain regions «at a stroke», including within Asia.
«We were always number 1 in Asia, but we can now add South Asia Pacific,» Kelleher said. «We've seen clients welcoming, they like the brand.»
Cultural Contamination
Three out of the four Credit Suisse businesses – the universal bank, asset management and global wealth management – will not be problematic for integration but UBS will be cautious with the investment bank, especially with regard to taking on staff from the unit.
«We are worried about 'cultural contamination'. We are going to have an incredibly high bar for who we bring into UBS,» Kelleher said, noting that Credit Suisse’s investment bank was «out of control» and will be significantly scaled back following the takeover.
AT1 Worries
Kelleher also noted that while some Asian clients had raised concerns about Credit Suisse’s AT1 wipeout, this was a matter for the Swiss regulator and not UBS.
He reiterated that UBS did not want the tie-up with Credit Suisse, which was arranged by the Swiss government in March to prevent a broader banking crisis. UBS aims to finalize the Credit Suisse deal in the «coming weeks» while full integration will take three to four years.
