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Ulrich Koerner, CEO of Credit Suisse Group AG, during an interview with Bloomberg Television in London, UK, Tuesday, March 14, 2023.
Hollie Adams | Bloomberg | Getty Images
UBS announced on Tuesday that Swiss credit CEO Ulrich Koerner will join the new joint entity’s board of directors once its emergency purchase of the troubled bank is complete.
The Swiss giant said the legal closing of the acquisition is expected in the coming weeks and the combined entity will operate as a “consolidated banking group”.
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The Credit Suisse brand will operate independently for the “foreseeable future” as UBS integrates the business in a “phased approach”, the bank said in a statement.
Swiss authorities negotiated the controversial emergency bailout of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over a weekend in March, amid a crisis of confidence among depositors and shareholders threatened to topple the 167-year-old institution.
UBS has confirmed that it will initially manage the two separate companies upon closing of the agreement, with each institution continuing to operate its own subsidiaries and branches while the UBS board and management board will assume overall responsibility for the consolidated group. .
Koerner, who took over struggling Credit Suisse in July 2022 and immediately launched a massive strategic overhaul aimed at reversing the bank’s chronic loss and risk management failures, will join the board, UBS confirmed. .
“With his knowledge of both organizations, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process,” UBS said.
UBS veteran Todd Tuckner will become group chief financial officer, succeeding Sarah Youngwood, who decided to step down following the closing of the transaction.
The combined company will operate with five business divisions, seven functions and four regions in addition to Credit Suisse, each represented by a board member reporting to UBS CEO Sergio Ermotti.
Ermotti said it was a “pivotal moment for UBS, Credit Suisse and the entire banking industry.”
“Together we will solidify and represent the Swiss model of finance to the world, a model that is capital light, less dependent on risk taking and anchored by stability and high quality service,” Ermotti said in a statement.
“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 to the wider financial system.