UBS after CS acquisition: Sergio Ermotti – Competitors in company banking can't be eradicated

2024-06-25 13:51:31

Ermoti: Competitors in enterprise shopper enterprise can’t be eradicated

The merger of UBS and CS didn’t considerably change the aggressive panorama in Switzerland.

Posted immediately at 3:51 PM

There isn’t a battle between UBS and Swiss SMEs: Sergio Ermotti speaks on the Business Days in Bern (file picture).

Picture: Urs Flüeler (Keystone)

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Swiss business performs an essential position in UBS’s enterprise mannequin. UBS Group President Sergio Ermotti confused this throughout an look at Business Day in Bern on Tuesday. The sector is a key issue within the Swiss financial system and UBS’s success.

“We’re a big world financial institution, however that doesn’t imply we’re in battle with Swiss SMEs,” Ermotti stated throughout a panel dialogue at an business convention organized by Swissmem, the Swiss Mechanical, Electrical and Metallic Industries Affiliation. “We wish to contribute to making sure that they function efficiently as corporations and carry out nicely.”

Ermotti dismissed criticism that UBS might use its robust affect in company banking to lift costs for banking providers. “We’ll show that such considerations are unfounded.” Ermotti was happy that the Competitors Fee (Comco) had confirmed that competitors within the Swiss banking centre was working.

Particular person value will increase

Ermotti acknowledged that in particular person circumstances, costs for enterprise with company shoppers had risen. Nonetheless, this primarily affected non-profit enterprise relationships that UBS took over from Credit score Suisse. As well as, the financial institution’s funding prices have additionally elevated as a result of rising rates of interest and better regulatory prices.

Ermotti firmly believes that it’s nearly unimaginable to disrupt the wholesome competitors within the Swiss monetary heart. The merger of UBS and CS has not considerably modified the aggressive panorama in Switzerland. “The unique 231 banks have grow to be 230 banks, and increasingly more overseas banks are contemplating coming into the Swiss market.”

In gentle of the opportunity of further capital calls for from main financial institution UBS, Ermotti requested his financial institution to not be “punished” by increased capital necessities. The teachings of the CS disaster present that thick capital buffers don’t adequately defend banks that not take pleasure in belief. In any case, what banks want is just not extra regulation, however increased high quality regulation.

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