Skip to content

Sergio Ermotti Rejoins UBS as CEO Amid Credit Suisse Takeover

Sergio Ermotti returns as UBS CEO to lead the ambitious takeover of Credit Suisse, leveraging his experience and expertise to navigate the challenges ahead.

Sergio Ermotti, CEO of UBS
Sergio Ermotti, CEO of UBS

Ermotti Returns for Credit Suisse Acquisition

UBS Group AG (UBSG.S) has rehired Sergio Ermotti as CEO to lead its massive takeover of Credit Suisse (CSGN.S). Ermotti's experience rebuilding the bank after the global financial crisis makes him a valuable asset for this ambitious deal.

Challenges Ahead for Ermotti

As the new CEO, Ermotti faces the daunting task of laying off thousands of employees, scaling back Credit Suisse's investment bank, and reassuring the world's wealthy that UBS remains a safe place for their funds.

Ermotti Replaces Hamers

UBS chairman Colm Kelleher decided to replace current CEO Ralph Hamers with Ermotti, citing his experience and ability to handle the risks associated with the merger.

Ermotti's Previous Tenure at UBS

Ermotti served as UBS's CEO from 2011 to 2020, executing the bank's turnaround after several scandals and losses. He is now chairman of Swiss Re (SRENH.S) and will assume his new role at UBS starting April 5.

Ermotti's Vision for the Future

The new CEO urges patience as the bank develops its strategic plan, emphasizing the importance of avoiding hasty decisions. Ermotti sees the Credit Suisse takeover as an opportunity he's always wanted to participate in.

UBS logo
UBS logo

UBS Inherits Credit Suisse's Troubles

As UBS acquires Credit Suisse, it inherits some of the latter's issues, including a recent U.S. Senate Finance Committee found that the bank violated a 2014 tax evasion deal. This could lead to future fines.

UBS Shares Rise After Ermotti Announcement

Following the announcement of Ermotti's return, UBS shares rose 3.6%, outperforming the Swiss blue-chip index's (.SSMI) 1.2% gain.

Analysts Praise Ermotti's Return

Analysts and shareholders, including Algebris Investments CEO Davide Serra, welcome Ermotti's return, citing his experience in reducing risk and streamlining UBS's investment bank operations.

Hamers Steps Down

Outgoing CEO Ralph Hamers, who succeeded Ermotti in November 2020, has agreed to step down in the best interest of the newly combined entity and will remain an adviser. Hamers needed to gain significant M&A experience and faced the challenge of merging two large banks with complex balance sheets.