2023-04-29 14:23:43
By acquiring Credit Suisse on March 19, UBS also became the owner of around a hundred additional branches, in addition to the 191 that the country’s leading bank already operates. Inevitably, a number of these branches are in similar locations. La NZZ counted 25 locations where a UBS branch is within 100 m of a Credit Suisse subsidiary. The branches concerned might be the first to disappear, according to the Zurich daily.
It is in Zurich that the density of agencies close to each other is the highest, with four “duos” less than 100 m apart and even 12 pairs if the distance is extended to 500 meters. Geneva appears with a couple of UBS-Credit Suisse branches within a radius of 100 m and 3 within 500 m. However, distance is not the only criterion when rationalizing the presence of a company: the services provided by the various branches, their attendance or their level of profitability can also be taken into account.
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Trend already established
The closing of bank branches has been a trend in place for several years. Between them, UBS and Credit Suisse had more than 600 in 1999, compared to 430 at the end of 2021. At the end of October, Credit Suisse had announced the closure of 14 of its 190 branches by February 2023, as part of the plan to savings unveiled on this occasion. The branch network of the two big banks is still dense in the agglomerations in the north and north-west of the country, further specifies the NZZ, while the mountain regions are less served, apart from the upscale tourist resorts like Saint-Moritz. or Gstaad.
Another possible way
Finally, it should be noted that the article assumes that it would not be advantageous for UBS to continue to operate two branches close to each other if they offer almost the same services. This logic would apply in the event that UBS completely absorbs its former rival and consolidates its activities under the brand with the three keys. These are the famous synergies often put forward in mergers and acquisitions. But it’s also possible that UBS will choose to keep the Credit Suisse brand and let the Swiss entity operate, with some adjustments. This approach would make it possible to limit job losses and above all to sell Credit Suisse’s domestic activities in the medium term. This strategy would lead to fewer branch disappearances than the geographical distribution of branches would suggest.
Duplicates in the rest of the world too
There are also duplicates internationally. UBS is active in 48 jurisdictions, Credit Suisse in 50, with 36 countries in common. Here, the complementarity of activities will be the decisive factor, says the German-speaking newspaper. The number of overseas presences has also fallen in recent years: the two big banks had 86 in 2021, compared to more than 150 before the 2008 financial crisis.
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