UBS Chief Executive Sergio Ermotti stated on Wednesday in Hong Kong that the bank is nearing the completion of its massive integration of Credit Suisse. The veteran banker noted that the bank is "almost done" with the operational work, with cost savings currently running ahead of targets.
According to UBS third-quarter results, the bank reported US$13.2 billion in cumulative gross cost savings against the 2022 cost base, and expects to reach about US$13.7 billion by year-end. This exceeds the bank's original target of about US$13.5 billion. The bank also reported that it completed the transfer of Credit Suisse’s Swiss client accounts in March, and by the end of September, about 90 per cent of targeted legacy IT applications had been decommissioned.
Ermotti described the integration as a "very particular" task that differed from his first term as CEO, which ended in 2020. He noted that the process required rebuilding client confidence and unifying 120,000 employees. He acknowledged the human cost of the merger, stating that "the hardest decisions are always related to people" and that the bank had to let go of staff who were "doing a good job" to ensure the remaining team could operate from a better bank.
The bank's workforce dropped from 119,100 full-time staff members at the end of June 2023 to 97,593 by the end of September 2026. Ermotti told analysts in August 2023 that the integration would lead to about 1,000 redundancies in the Swiss bank and another 2,000 through restructuring over the following years, primarily through natural attrition and retirements.
Financial results show the bank is moving toward a growth phase. Invested assets reached US$7.3 trillion by the end of September 2026, up from US$3.96 trillion at the end of 2022. The bank reported a third-quarter net profit of US$2.7 billion, bringing the nine-month total to US$8.5 billion, which is higher than the US$7.6 billion profit for all of 2022. Ermotti stated that the bank should be able to grow faster now that the focus on integration is ending, specifically by targeting global wealth creation and hiring more client advisers in Asia.
However, the bank now faces a high-stakes test regarding Swiss regulations. Following the collapse of Credit Suisse, Swiss lawmakers are considering tougher rules for "too big to fail" banks. On September 23, Switzerland’s upper house voted to require UBS to back its foreign units with 90 per cent common equity tier 1 capital. UBS estimates this would require approximately US$18 billion in additional capital.
Ermotti warned on October 28 that such measures could hurt the bank's international competitiveness and stated the bank is assessing the long-term consequences. He expressed hope that the Swiss Federal Assembly would find a solution that supports stability "without impairing our ability to compete as a global bank." While the bank recognizes the need to learn from Credit Suisse’s downfall, Ermotti insisted the bank has a fiduciary duty to remain competitive while operating from Switzerland.
