The Swiss units of UBS Group AG UBS and Credit Suisse Group are on track to merge by Jul. 1, according to a senior UBS executive.
What Happened: The executive, Sabine Keller-Busse, President of UBS Switzerland, stated that the merger plan is progressing smoothly, Reuters reported on Tuesday, citing Neue Zuercher Zeitung newspaper interview.
“The merger could be done by July 1, 2024,” she said. Customers will start transferring to UBS’s IT systems in 2025. The merger of the parent companies of UBS and Credit Suisse concluded at the end of last month, leaving Switzerland with a single global bank.
UBS’s successful integration of its long-time competitor is a key measure of the deal’s success. Keller-Busse, who confirmed that there would be 3,000 layoffs in Switzerland due to the overall merger, was also asked about her potential to succeed UBS CEO Sergio Ermotti, who is expected to step down within the next three years.
“I have one of the most interesting jobs in the banking industry,” she said. “That’s what I’m concentrating on, as I always have. All this speculation is irrelevant to me.”
Why It Matters: This follows UBS’s acquisition of Credit Suisse‘s Japanese wealth management unit in April, as part of a joint venture with SuMi TRUST Wealth Management Co. The integration of Credit Suisse’s advisors and assets into UBS SuMi is expected to bolster UBS’s presence in Japan.
Additionally, UBS announced a $2 billion share buyback program in April, aimed at enhancing investor returns amid the Credit Suisse acquisition. This strategic move is intended to reassure investors and provide a clearer picture of future returns.
Earlier in February, Ant Group, backed by Jack Ma, outbid Citadel Securities for Credit Suisse’s China unit, highlighting the competitive landscape in the financial sector.
Moreover, Credit Suisse faced a $3 million fine by the Monetary Authority of Singapore in December for failing to provide accurate post-trade disclosures, underscoring the regulatory challenges the bank has faced.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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