Sergio Ermotti will return as CEO of banking giant UBS to pilot the acquisition of Credit Suisse. This was announced by the bank’s board of directors. “The UBS board of directors has appointed Sergio P. Ermotti as chief executive officer and chairman of the group board, effective April 5, 2023,” reads a statement.
Ermotti, who is currently chairman of Swiss Re, will resume the role he held for nine years following next week’s annual general meeting. Current UBS CEO Ralph Hamers will remain at the bank for a transitional period.
Earlier this month, UBS agreed to acquire its rival Credit Suisse after it fell into the turmoil and lost market confidence. The first combination of two major banks in decades promises to be complex to execute, while offering significant potential to expand the wealth management business UBS has focused on. Hamers “has agreed to step down to serve the interests of the new combination, the Swiss financial sector and the country,” UBS said in the note announcing the handover.
Born in Lugano, born in 1960, Ermotti was CEO of the group from 2011 to 2020. During his mandate – Bloomberg reconstructs – he renewed the governance policies after a dishonest trader had cost billions of dollars and moved the credit institution from riskier trading to management. Instead, Hamers’ mission was to bring UBS into the digital age and to make it grow by expanding the ranks of the wealthiest customers. However, a fundamental part of this strategy failed last year, when UBS withdrew from the acquisition of the US Wealthfront after the deal had already been made.