UBS chief steps down ‘in the interest of Switzerland’ after Credit Suisse deal

UBS has drafted in the chief executive who helped it recover from the financial crisis to steer the bank through the takeover of Credit Suisse.

Sergio Ermotti, who led the Swiss lender for nine years until 2020, will replace Ralph Hamers less than two weeks after regulators engineered an emergency takeover of UBS’ fiercest rival.

UBS said the move came “in light of the new challenges and priorities facing UBS after the announcement of the acquisition”, citing Mr Ermotti’s experience in previously restructuring its investment bank.

The bank said: “This unique experience, together with his deep understanding of the financial services industry in Switzerland and globally, make Sergio Ermotti ideally placed to pursue the integration of Credit Suisse.”

The shock move comes after UBS agreed to snap up Credit Suisse in a £2.6bn deal orchestrated by Swiss authorities to avoid the latter failing and precipitating a wider crisis in the global banking industry.

Mr Hamers said he was “stepping aside in the interests of the new combined entity and its stakeholders, including Switzerland and its financial sector”.

He added: “Integrating Credit Suisse is UBS’s single most important task and I am confident that Sergio will successfully guide the bank through this next phase.

“I am of course sorry to leave UBS, but circumstances have changed in ways that none of us expected.”

Immediate challenges for Mr Ermotti, who currently serves as the chairman of insurer Swiss Re, will include laying off thousands of staff, cutting back Credit Suisse’s investment bank and reassuring wealthy clients that UBS remains the best place to deposit their cash.

UBS shares rose more than 2pc in Zurich following the news of Mr Ermotti’s appointment.

Mr Hamers was hired as Mr Ermotti’s replacement to help digitise and modernise UBS.

UBS chairman Colm Kelleher said Mr Hamers had put the bank “in a position to stabilise Credit Suisse and ensure a successful integration”.

He added: “While the acquisition will support UBS’s existing strategy, it imposes new priorities on us.

“With his unique experience, I am very confident that Sergio will deliver the successful integration that is so essential for both banks’ clients, employees and investors, and for Switzerland. I know Sergio will hit the ground running.”