The new Swiss megabank seems to be on track with the integration of Credit Suisse (CS), at least on the employee level. However, UBS faces more challenges in the battle for CS clients.
Sabine Keller-Busse believes UBS is on course with the integration of CS. «The merger could take place as early as July 1, 2024,» she said in an interview with «NZZ» on Tuesday. However, this will initially only affect employees.
For Credit Suisse clients, only the legal counterparty will change at first. They will be migrated to UBS systems over the course of 2025. However, according to Keller-Busse, UBS will start with some complex clients such as large family offices or major corporations in 2024.
Future Network
The new Swiss megabank is also making good progress in streamlining its branch network.
«In the pilot branches, it is working very well. The implementation involves a one-off effort, but will allow us to close the surplus branches quickly,» emphasizes the head of UBS Switzerland. Otherwise, they would have had to wait until the end of 2025.
High Interest In Branch Locations
Today, there are 95 CS branches and 190 UBS branches in Switzerland – after the integration, there will be 194.
«CS clients will thus have twice as many branches as before,» says Keller-Busse. This will not result in significant legacy issues. Most of the branches are leased regularly, and interest from new tenants is high, according to Keller-Busse: «I am already being approached by many retailers asking to be considered.»
Battle For Corporate Clients And Employees
Foreign banks and cantonal banks are vying for CS corporate clients as well as employees. UBS is feeling this «extremely,» as the head of UBS Switzerland says in the interview: «It doesn't just affect corporate clients. Private and cantonal banks are also targeting employees and private clients very aggressively in some cases - the competition is not just coming from foreign banks. It is suggested that UBS no longer has time to take care of customers.»
According to Keller-Busse, a team is taking care of the integration. «The others always hear the same key message from me: Stay with the customers. Don't worry about the integration right now, we are providing transparent updates at all times,» she says.
Focus Remains On Swiss Companies
Keller-Busse emphasizes that corporate banking will remain central for UBS in the future: «For the majority of corporate clients, there is no issue regarding our risk appetite,» she says. The focus is clearly on Swiss companies: «For example, we do not do pure financing abroad for foreign companies.» Unprofitable relationships need to be repriced, but this has been communicated transparently to the clients. «Incidentally, not everything can be blamed on the integration. The interest rate situation has also changed significantly. Before issuing new loans, we must always assess the current risk situation of the company, its cash flows, and financing costs,» she says.
Sabine Keller-Busse leaves the question of whether she is interested in the CEO position open. «I have one of the most interesting jobs in the banking industry. That is what I am focusing on, as I always have. All these speculations are irrelevant to me,» she says.
