UBS’ Sergio Ermotti on the crises that shaped the bank and navigating regulatory webs
In late March 2023, Sergio Ermotti’s telephone rang. Then, he was serving as chairman of Swiss Re and set to renew his term, comfortably ensconced in what appeared to be a dignified, settled chapter of an illustrious banking career. On the other end of the line was UBS chairman Colm Kelleher. A day earlier, Kelleher’s bank had agreed to buy fallen rival Credit Suisse for 3 billion Swiss francs…
In late March 2023, Sergio Ermotti returned to UBS as its chief executive after being approached by UBS chairman Colm Kelleher. Kelleher had recently agreed to buy Credit Suisse for 3 billion Swiss francs (US$3.66 billion) in a state-brokered rescue and needed a battle-tested leader to manage the integration. Ermotti, who was serving as chairman of Swiss Re at the time, felt humbled to be called back to help create something good out of a very bad situation.
Ermotti, a veteran banker with over three decades of experience managing restructuring and crisis situations, was appointed interim CEO following a rogue-trading scandal involving a US$2.3 billion loss. During his first term as CEO, UBS generated US$33 billion in capital without raising new equity, with US$22 billion delivered or accrued for shareholder returns.
Ermotti's second tenure at UBS is proving to be complex, as the integration of Credit Suisse requires rebuilding client confidence and unifying a workforce of 120,000 employees. The integration is nearly complete, with cost savings running ahead of targets, but the bank now faces a major hurdle from Swiss lawmakers who are considering tougher capital rules for UBS.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
