UBS appoints Sergio Ermotti as new CEO following the acquisition of Credit Suisse

UBS named Sergio P. Ermotti as CEO following the deal to buy Credit Suisse.

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UBS appointed Sergio Ermotti as its new CEO on Wednesday, following the recent acquisition of Credit Suisse.

The move will take effect on April 5, UBS said in a statement.

Ermotti – who was CEO of UBS for nine years, from November 2011 to October 2020 – will replace current CEO Ralph Hamers. He is currently chairman of the insurance company Swiss Re.

Hamers is set to remain at UBS to advise the bank during the transition period to “ensure the successful completion of the transaction and a smooth handover,” the company said.

On March 19, Switzerland’s largest bank UBS agreed to buy its embattled rival Credit Suisse for 3 billion Swiss francs ($3.2 billion). Swiss regulators played a key role in the deal as governments looked to contain a contagion threatening the global banking system.

The leadership change comes “in light of the new challenges and priorities facing UBS following the announcement of the acquisition,” UBS said in the announcement.

In the statement, UBS said Ermotti “successfully repositioned” the bank after the 2008 global financial crisis, and “achieved a profound culture change at the bank.”

This allowed UBS to “regain the trust of clients and other stakeholders, while restoring people’s pride in working for UBS.”

Hamers reportedly told staff at the government-orchestrated takeover that UBS “didn’t buy Credit Suisse just to shut it down,” Reuters reported.

In the announcement, UBS Chairman Colm Kelleher called Hamers an “outstanding” CEO who led UBS to “outstanding success despite a challenging environment.”

While the acquisition of Credit Suisse supports UBS’s existing strategy, it imposes new priorities on the group, he said.

“With his unique experience, I am very confident that Sergio will deliver the successful integration that is so important for both the banks’ customers, employees and investors, and for Switzerland,” said Kelleher.

This is breaking news. Please check back for updates.

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