UBS keeps Credit Suisse CEO for leadership team in merger

ZURICH: Swiss banking giant UBS announced on Tuesday that Credit Suisse chief executive Ulrich Koerner would join its leadership team following the takeover of its fallen domestic rival.

Koerner will be the only top manager from Credit Suisse to join the executive board after the bank is absorbed by UBS, which expects the mega merger to be wrapped up “in the next few weeks”.

The Swiss government strong-armed UBS into buying its rival for $3.25 billion after the collapse of three US lenders in March raised concerns about Credit Suisse’s own financial health following a series of scandals in recent years.

“This is a pivotal moment for UBS, Credit Suisse and the entire banking industry,” said UBS CEO Sergio Ermotti, who returned to Switzerland’s biggest bank last month to handle the merger.

“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,” he added.

Swiss-German Koerner, 60, held top positions at UBS and was a member of its executive board for 11 years before returning to Credit Suisse in 2021, where he had previously worked.

After heading Credit Suisse’s asset management division, which was rocked by the bankruptcy of British financial firm Greensill, he was named CEO last year.