UBS expects that "the legal closing" of the merger will occur "in the coming weeks," it said Tuesday in a statement, while specifying that the two banks will continue to operate independently at first, the merger being done gradually.

Although merged, the two banks will initially retain their own subsidiaries and branches.

Ulrich Körner, 60, who spent much of his career at UBS before joining Credit Suisse last year in an attempt to turn it around, will join UBS's Executive Committee upon closing of the transaction.

"With his knowledge of both organizations, he will be responsible for ensuring business continuity and client care while supporting the integration process," UBS said in the statement.

The German-Swiss national holds a doctorate in economics and worked at Credit Suisse from 1998 to 2009 before joining UBS, where he led the asset management business and was already a member of the Executive Board.

Known for his expertise in restructuring, he then returned to Credit Suisse in 2021, first to turn around the asset management business, shaken by the bankruptcy of the British financial company Greensill, before being entrusted with the management of the entire group in 2022.

"The integration of legal activities and entities will take time," said Sergio Ermotti, chief executive of UBS.

UBS CEO Sergio Ermotti at a prese conference in Zurich, March 29, 2023 © ARND WIEGMANN / AFP/Archives

The activities will be divided into five divisions, says the bank, which reveals the composition of its teams. UBS will place executives from its ranks in key positions. Iqbal Khan, who also spent part of his career at Credit Suisse, will remain Head of International Wealth Management.

Robert Karofsky, who heads UBS's investment bank, will remain in his position, as will Sabine Keller-Busse, who heads UBS's Swiss business.

New CFO

UBS also announces the departure of its Chief Financial Officer, Sarah Youngwood. She will step down at the time of the merger and will be replaced by Todd Tuckner, the current Head of Performance and Risk Management for International Wealth Management. An executive at UBS since 2004, he will take up his position as finance director at the closing of the transaction but is already joining the management committee "with immediate effect," the statement said.

This new management team is "not very surprising", responded Andreas Venditti, analyst at Vontobel, in a market commentary. It "clearly reflects the fact that UBS is taking over Credit Suisse," he added, noting that there will be no former Credit Suisse executives "apart from Ulrich Körner in the new management committee."

UBS agreed on March 19 to buy its compatriot Credit Suisse under pressure from the Swiss authorities for 3 billion Swiss francs and with strong financial guarantees from the federal government and the central bank.

Without this rescue, Switzerland's second-largest bank would probably have been insolvent on 20 or 21 March, explained President Alain Berset.

© 2023 AFP