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Credit Suisse outflows stemmed, job cuts coming, UBS boss confirms

Published 12/05/2023, 12:41
Updated 12/05/2023, 13:11
© Reuters.  Credit Suisse outflows stemmed, job cuts coming, UBS boss confirms
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Proactive Investors - Collapsed Swiss bank Credit Suisse (SIX:CSGN) is no longer seeing outflows, Sergio Ermotti, the chief executive officer at its new owner UBS Group AG (SIX:UBSG), has confirmed.

The newly appointed boss said that while the situation had stabilised, there was still a necessity to launch an investigation into how and why Credit Suisse faltered.

UBS was forced by Swiss regulators into a shotgun marriage with Credit Suisse after its rival saw £55bln withdrawn in the first three months of 2023.

Ermotti confirmed it plans to sell off parts of Credit Suisse once the deal is complete.

UBS has sent 100 of its bankers to analyse Credit Suisse’s staff, clients and lines of business, to help decide which areas can be cut.

Up to 30% of Credit Suisse’s workforce are expected to leave to avoid two people doing one job with the embattled bank’s investment division expected to be wound down with 17,000 staff let go.

Speaking to the Swiss media forum in Lucerne, Ermotti said he believed the acquisition is on track to be finalised by mid-June.

Shares in UBS are currently up 1% on Friday, having opened at just over SFr17.

Read more on Proactive Investors UK

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