Swiss bank and financial services company UBS, which has been conducting the acquisition of the Credit Suisse bank, said on Wednesday that it had appointed the chairman of the Swiss re insurance company, Sergio Ermotti, as the group’s chief executive officer starting from April 5.
“Further to the announcement of 19 March 2023 regarding UBS’s acquisition of Credit Suisse, the Board of Directors of UBS have appointed Sergio P. Ermotti as Group Chief Executive Officer and President of the Group Executive Board, effective on 5 April 2023, after the Annual General Meeting,” the statement read.
The board has made the decision in light of the “new challenges and priorities facing UBS” after the announcement of the acquisition, the document also said.
“Ralph Hamers [the current CEO of UBS] will remain at UBS and work alongside Sergio P. Ermotti as an advisor during a transition period to ensure a successful closure of the transaction and a smooth hand-over,” the statement added.
Ermotti was the group CEO at UBS from 2011 to 2020, and “successfully repositioned” UBS following the severe challenges from the 2007-2008 global financial crisis, according to the statement.
Earlier in March, the Swiss National Bank announced the acquisition of Credit Suisse by UBS, adding that it could grant UBS a liquidity assistance loan with privileged creditor status in bankruptcy for a total of up to 100 billion Swiss francs ($108 billion) after the takeover, so as to ensure the stability of the country’s financial system.
The Swiss government provided a guarantee of 9 billion Swiss francs to UBS to cover the potential losses of Credit Suisse after the latter’s share price plunged nearly 30%, sparking concerns about a liquidity crunch.