Global wealth manager UBS has unveiled a newly established operation model and leadership team as it publishes its plans following the Credit Suisse acquisition.
UBS said it anticipates that the deal will complete in the next few weeks. At this time, Credit Suisse will be merged into UBS and the combined entity will operate as a consolidated banking group.
The two companies will continue to operate independently for the foreseeable future and UBS will “carry out the integration in a phased approach”, the wealth manager said.
Sergio Ermotti, UBS Group chief executive, said: “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry. Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service.
“This transaction will allow us to offer attractive returns to our shareholders and give us capacity to further invest and grow. With the new operating model and leadership team, UBS is well-equipped to build on its existing strength and the successes of the past decade.
“The integration of the businesses and legal entities will take time. But adding Credit Suisse to UBS’s highly capital-accretive business model, diversified revenue streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors, the economies we serve and the wider financial system.”
Details
At the time of legal close, the following governance will apply:
- – UBS Group will initially manage the two separate parent companies – UBS and Credit Suisse. Each institution will continue to have its own subsidiaries and branches, serve its clients, and deal with counterparties;
- – The UBS Group board of directors and the UBS Group executive board will hold overall responsibility for the consolidated group; and
- – Pending further integration, Credit Suisse will continue to rely on its established governance and risk control frameworks, though some new policies will be put in place to ensure that UBS Group has effective oversight.
The combined firm will operate with five business divisions, seven functions and four regions, and in addition Credit Suisse. Each will be represented by a group executive board member, all of whom will report to Ermotti.
Credit Suisse chief executive Ulrich Körner will become a member of the UBS Group executive board upon transaction close. With his knowledge of both organisations, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process.
Divisional changes
Iqbal Khan will remain president of UBS Global Wealth Management and Rob Karofsky will remain president of its investment bank.
Sabine Keller-Busse will remain president of personal and corporate banking, and president of Switzerland. Suni Harford will remain president of asset management and lead for sustainability and impact
Beatriz Martin Jimenez will become head of non-core and legacy, and president of Emea. She will remain UBS chief executive for the UK and will continue in her role as group treasurer until a successor is named.
Management changes
Todd Tuckner has been appointed group chief financial officer. He will become a member of the group executive board with immediate effect and take on the role of chief financial officer at close of the acquisition.
Having joined UBS in 2004, Tuckner is currently chief financial officer and head of business performance and risk management for its global wealth management division and has held various leadership roles across finance in the US and Switzerland.
He will succeed Sarah Youngwood, who has decided to leave the firm after the transaction closes. She has been at UBS since 2022.
Michelle Bereaux will become group integration officer. She has spent nearly 23 years at UBS and has held various leadership roles across the firm.
She previously served as chief operating officer and head of human resources for UBS’ investment bank, and most recently was chief operating officer and UK country head of its asset management business.
Elsewhere, UBS has named Mike Dargan as group chief operations and technology officer, and Stefan Seiler as group head of human resources and corporate services. Also, Christian Bluhm will remain group chief risk officer, Barbara Levi will remain group general counsel and Markus Ronner will remain group chief compliance and governance officer.
UBS said: “Upon transaction close, all Credit Suisse executive board members and permanent guests who are also division and function heads will report to both their respective UBS executive board member and Körner.
“This will ensure that Credit Suisse remains accountable for its day-to-day operations, while facilitating the integration of the respective areas into UBS over time. As previously announced, UBS will evaluate all options for Credit Suisse’s Swiss business and will communicate further on this matter in the coming months.”
Regional changes
The wealth manager also said that Naureen Hassan will remain as president for the Americas and Edmund Koh will remain president for Asia Pacific.
But Martin Jimenez will become president for the Emea region.
UBS added that it is “confident that it has the right operating model and leadership team for a successful integration”.
“It is committed to providing regular updates on the integration process over time.”
This story originated on our sister title, International Adviser.
