Swiss banks UBS and Credit Suisse have completed their merger after over a year, finally bringing an end to the ordeal.
Credit Suisse saga began last year after a delayed annual report revealed “material weaknesses” at the bank.
It published the warning at the worst possible time, as investors were already shaken by the collapse of Silicon Valley Bank. Credit Suisse’s shares plunged after the warning.
At the time, the Swiss National Bank said that the takeover would be the best way to restore the confidence in financial markets, and there had long been rumours of a potential merger between the two.
The merger will allow clients and operations from Credit Suisse to be migrated to UBS platforms. While Credit Suisse customers are UBS clients, some have continued on Credit Suisse platforms and tools.
While the two companies are now fully merged, US branches won’t be merged until next week, while their Swiss branches will merge in the next quarter of this year.
UBS CEO Sergio Ermotti said today was a “significant milestone” in the integration journey between the two firms.
“The merger of our parent banks is critical to facilitating the migration of clients onto UBS platforms. It will also unlock the next phase of cost, capital, funding and tax benefits from the second half of 2024.
“As we embark on this transitional phase of operational consolidation, we will remain focused on serving our clients, following through on our strategy, investing in our people, and acting as a pillar of economic support in the communities where we live and work.”
The former boss of Credit Suisse Ulrich Korner said yesterday that he would retire later this year, after having stayed in the position to ensure “continuity” during the merger.
In February, UBS announced a mega share buyback of up to £1.6bn, after suspending its previous plan last year following the Credit Suisse acquisition.
The bank said the repurchase scheme would begin after the completion of the merger of the UBS and Credit Suisse parent companies.