UBS CEO backs Swiss banking giant’s ability to handle Credit Suisse merger risks
2023.03.20 04:47
© Reuters.
By Scott Kanowsky
Investing.com — The Chief Executive of UBS Group AG (SIX:) said on Monday that the bank can handle the risks related to its takeover of smaller rival Credit Suisse Group AG (SIX:).
UBS agreed to buy its 167-year-old peer for $3.25 billion after a weekend of tense dealmaking overseen by Swiss authorities concerned about the health of the Swiss banking system and subsequent contagion in global markets.
In an interview with broadcaster SRF, UBS CEO Ralph Hamers, who will helm the combined company, backed the lender’s liquidity position and capital ratio.
“We have a very good capital ratio at UBS, and we also have a very good liquidity position. So we have contained the risks in the markets,” Hamers was quoted by Reuters as saying.
“The second step for us is to transform CS’s investment bank into an investment bank like UBS has. We call this a capital-light investment bank. In doing so, we are not taking so much risk.”
Hamers added that there will be cost-cutting at Credit Suisse following the tie-up, but did not provide any details around any potential layoffs.
