Sergio Ermotti returns as UBS CEO to steer Credit Suisse takeover

UBS Group AG has appointed Sergio Ermotti as CEO to oversee its acquisition of Credit Suisse. The move is meant to take advantage of Ermotti’s experience in rebuilding UBS after the global financial crisis. His challenges include laying off staff, trimming Credit Suisse’s investment bank, and reassuring wealthy clients that UBS is a safe place for their money.

Current CEO Ralph Hamers will step down and serve as an advisor. Analysts applauded the decision to bring back Ermotti, who had previously led UBS from 2011 to 2020, citing his experience in paring back UBS’s investment bank after the 2008 financial crisis. Ermotti will take over as CEO from April 5.

UBS recently bought Credit Suisse in a shotgun merger organized by Swiss authorities to stem turmoil. This deal made UBS Switzerland’s sole global bank, backed by state loans and guarantees worth roughly 260 billion francs ($170 billion). UBS shares increased by 1.8% following the announcement of Ermotti’s appointment.

Analysts say the task of integrating UBS and Credit Suisse will be challenging but urgent. Ermotti has asked for patience as his team forges UBS’s strategic plan over the next few months. The merger will combine two banks with over $1.6 trillion in assets and more than 120,000 staff members.

Reporting by John Revill; Additional reporting by Akriti Sharma in Bengaluru, John O’Donnell in Frankfurt and Elisa Martinuzzi in London; Writing by John O’Donnell; Editing by Edwina Gibbs and Toby Chopra