With the legal close of the deal expected to take place within the next few weeks, the “important milestone” for UBS and Credit Suisse is being reflected through a newly outlined operating model.
UBS has announced an “important milestone” in its planned acquisition of Credit Suisse set to take place in the coming weeks by outlining its new operating model and leadership team.
The combined firm will operate across five business divisions, seven functions, and four regions, of which Credit Suisse is set to operate alongside. As such, each will be represented by a group executive board member who will report to UBS Group chief executive, Sergio Ermotti.
Specifically, Credit Suisse chief executive Ulrich Körner will become a UBS group executive board member upon the transaction, UBS said in a statement, and will be responsible for ensuring the bank’s operational continuity and support the integration process.
The restructuring is also characterised by a number of internal promotions. Notably, the only division lead change is the appointment of Beatriz Martin Jimenez, who will become head non-core and legacy, and president Europe, Middle East, and Africa (EMEA). She will remain UBS chief executive for the UK and will continue in her role as group treasurer until a successor is named.
In regard to the UBS function restructure, Todd Tuckner is set to succeed Sarah Youngwod as group chief financial officer, and Michelle Bereaux has been named group integration officer. Mr Tuckner and Ms Bereaux have spent 19 years and 22 years with UBS, respectively.
Moreover, UBS chief digital and information officer Mike Dargan will now be group chief operations and technology officer.
Upon transaction close, all Credit Suisse executive board members, alongside division and function heads, will report to both their respective UBS executive board member as well as Mr Körner.
This, UBS said, will ensure that Credit Suisse remains “accountable” for its day-to-day operations, while facilitating the integration of the respective areas into UBS over time.
According to Mr Ermotti, this is a “pivotal” moment for UBS, Credit Suisse, and the entire banking industry.
“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,” Mr Ermotti explained.
While Mr Ermotti conceded that the integration of the businesses and legal entities will take time, he reasoned that the addition of Credit Suisse will benefit its “clients, employees, investors, the economies we serve and the wider financial system”.
The combined entity will operate as a consolidated banking group, but UBS and Credit Suisse will continue to operate independently while UBS carries out the integration in a phased approach.
