By Chris Dorrell
UBS has reappointed Sergio Ermotti as new chief executive just weeks after the Swiss banking giant acquired its long-time rival Credit Suisse.
Emotti, who will replace the outgoing Ralph Hamers, was previously chief executive for nine years up to 2020, directing the bank in the aftermath of the financial crisis.
Hamers agreed to step down to “serve the interests of the new combination, the Swiss financial sector and the country.”
In a statement, UBS said Ermotti put the bank’s wealth and assessment management and Swiss bank at the core of UBS’ operations. He was also responsible for cutting its investment banking footprint and achieving a “profound culture change”.
“This unique experience, together with his deep understanding of the financial services industry in Switzerland and globally, make Sergio P. Ermotti ideally placed to pursue the integration of Credit Suisse,” the bank said.
Ermotti said: “I am honoured to be asked to lead this bank at a time that is so important for all its stakeholders and for Switzerland. I would like to express my gratitude to Ralph for steering UBS so successfully. The task at hand is an urgent and challenging one.”
Ermotti is currently chair of Swiss Re. His reappointment at UBS becomes effectives on 5 April. Hamers will remain as an adviser to ensure the closure of the deal and a smooth handover.
Hamers succeeded Ermotti in 2020 and managed UBS through a “challenging market environment”. He delivered record results in two successive years.
“Integrating Credit Suisse is UBS’s single most important task and I am confident that Sergio will successfully guide the bank through this next phase. I am of course sorry to leave UBS, but circumstances have changed in ways that none of us expected,” Hamers said.
The announcement comes two weeks after UBS acquired Credit Suisse for a discount $3bn. The deal was brokered by Swiss authorities to prevent “unthinkable” circumstances”.
UBS intends to downsize Credit Suisse’s investment bank, which has been the source of much of Credit Suisse’s problems. It also hopes to reform align its more risky culture with the conservative culture of UBS.
UBS chair Colm Kelleher said: “While the acquisition will support UBS’s existing strategy, it imposes new priorities on us. With his unique experience, I am very confident that Sergio will deliver the successful integration that is so essential for both banks’ clients, employees and investors, and for Switzerland.”
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