Sergio Ermotti, chief govt officer of UBS Group
Stefan Wermuth | Bloomberg | Getty Photographs
UBS CEO Sergio Ermotti on Wednesday stated individuals with issues concerning the measurement of the financial institution’s stability sheet are getting “indoctrinated” by teachers and will “do their homework.”
UBS accomplished its takeover of Credit score Suisse in June 2023 after an emergency rescue deal was brokered by Swiss authorities to forestall the then 167-year-old establishment’s collapse and shield the Swiss economic system.
Ermotti was introduced again to the helm of UBS to supervise the complicated integration of Credit score Suisse’s enterprise — a mission to date deemed a powerful success by the market. The financial institution’s share value has recovered from beneath 17 Swiss francs ($19.69) per share within the aftermath of the deal to over 25 Swiss francs as of Wednesday morning.
Nevertheless, the brand new entity’s mixed stability sheet is estimated to be round twice the dimensions of all the GDP of Switzerland, elevating issues concerning the focus of threat within the Swiss economic system.
Talking to CNBC on the sidelines of the World Financial Discussion board in Davos, Switzerland, on Wednesday, Ermotti stated he understood why some parts of the Swiss inhabitants nonetheless have reservations, as they’re being “indoctrinated virtually day by day by a number of teachers” and focusing solely on the dimensions of the financial institution’s stability sheet versus the nationwide GDP.
“For those who have a look at risk-weighted belongings as a share of GDP or as a share of our stability sheet, you’ll uncover that the brand new UBS is de facto very low threat, very targeted enterprise mannequin. The chance we’ve got is in Swiss mortgages, in Lombard loans, in stuff that could be very low threat,” he stated.
Ermotti contended that the “new UBS” incorporating its fallen rival to create a globally aggressive, low-risk financial institution is a “reflection of Switzerland.”
“Switzerland is a small nation that punches properly above its weight in lots of sectors — in meals, in pharma, in innovation — and having a robust financial institution that may compete, not solely in Europe, however globally, is a part of our economic system,” he stated.
He additionally argued that the concentrate on the chance to the Swiss taxpayer fails to have in mind the size of the financial institution’s personal tax contributions, urging the general public to “have a look at the dangers but additionally the advantages.”
“In that sense, our position is to assist the people who find themselves not satisfied, that need to hearken to arguments, to tell them in order that they arrive to an opinion that’s knowledgeable, hopefully the precise one. I respect individuals having different opinions, however I do anticipate them to do their homework,” he added.