The UBS mega-bank project is not progressing entirely without hitches. Recently, it has become apparent that whenever there's a snag, the corporation taps into the talent pool of its Swiss unit.
Starting next week, on June 1st, the new team led by Aleksandar Ivanovic will launch: Appointed as the new head of the asset management division of the merged UBS last March, the manager has since been organizing his team and delegated responsibility for products and various important markets to new hands. Now, Ivanovic's team is ready to begin.
However, Simone Westerfeld (pictured below) is yet to assume her new role. The German-Swiss dual citizen will step down from overseeing the entire Swiss retail banking (personal banking) at the major bank on July 1st. Instead, she will take over the operational leadership of the UBS Integration Office, as exclusively reported by finews.ch recently.
This office is responsible for the integration of the acquired troubled bank Credit Suisse (CS).
Desperately Needed: Right-Hand Person
(Image: UBS)
The group recalled the digitally savvy bank manager when there was an urgent need to fill a gap: the previous operational leader (COO) at the Integration Office, Penny Tunbridge, a former CS executive, had left. Thus, UBS veteran Michelle Bereaux, tasked with leading the unit, urgently needs a new right-hand person for her challenging task.
The new asset management chief Ivanovic also previously held Swiss responsibilities. Before being appointed to head the fund business, he led the local market and the Europe, Middle East, and Africa (EMEA) region. It seems he was brought into the new position in a delicate situation. Under the former fund chief Sunni Harford, the division saw significant outflows and costs increased at the end of 2023.
Still, a Harsh Cut Looms
In the first quarter of 2024, UBS Asset Management seems to have found its footing; the division reported a 54 percent higher revenue of $776 million compared to the previous year and attracted $21 billion in new money. However, a reported cost-cutting measure at the division, aiming to save at least $300 million, is still pending.
Is there a pattern emerging here? Whenever there's a hitch in the corporate structure, UBS recruits talent from the domestic market. This was the case with Westerfeld, briefly considered as the new PostFinance CEO, and with fund professional Ivanovic, who began his career in 1992 with a banking apprenticeship at UBS in Switzerland.
Candidates With Swiss Backgrounds
Meanwhile, the Swiss wealth management chief Iqbal Khan and the Swiss head Sabine Keller-Busse apparently stand a better chance of landing the top position at the country's largest bank. As reported by finews.ch, the current CEO Sergio Ermotti is exclusively considering internal candidates for succession planning.
Khan, responsible for UBS's core business, and the German-Swiss dual citizen Keller-Busse, in charge of the domestic market, are logical candidates.
Since Keller-Busse took over the reins of the Swiss business (personal & corporate banking, P&C) in 2021, it has not only shown solid performance but has also gained momentum in profit and growth – partly due to the very favorable interest rate environment for banks and the demise of arch-rival CS. In this regard, the division has proven to be a talent pool for individuals capable of making an impact even at the group level.
Exception to the Rule?
It remains to be seen whether appointments following this pattern will extend to other personnel like Westerfeld and Ivanovic soon.
(Image: UBS)
Meanwhile, an exception that confirms the rule can be observed. August Hatecke (pictured above), former co-head of UBS wealth management in the Asia-Pacific region, was recalled from Singapore to Switzerland last summer to take over the combined Swiss private banking.
However, Hatecke is also a leader shaped in the domestic market: at UBS, he led the business with ultra-rich private clients between 2010 and 2016 before being sent to Asia.
