New UBS CEO plays down concerns over size of Swiss bank combination

The incoming CEO of UBS, Sergio Ermotti, has attempted to alleviate concerns about the bank’s merger with Credit Suisse. The merger, which was orchestrated to promote global financial stability amidst instability, would create a new Swiss bank boasting over 120,000 employees and $1.6 trillion in assets. Critics have expressed doubts about the deal due to its scale.

Ermotti, however, insists that the new bank’s size will not be excessive; it will not even be the largest international bank. Instead, he argues that the bank’s global reach will provide additional advantages. Ermotti also indicated that the bank will maintain its focus on wealth management and minimize the risks associated with investment banking. He will assume the position of CEO on April 5.

Meanwhile, Switzerland’s government and public have expressed concerns about the level of state support provided to the banks, amounting to nearly 260 billion Swiss francs ($284 billion) in liquidity and guarantees from the government and Swiss National Bank. Ermotti, however, believes these guarantees are reasonable under the current framework for the merger.

($1 = 0.9148 Swiss francs)

(Writing by Keith Weir; Editing by Emelia Sithole-Matarise)

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