ZURICH (Reuters) – UBS is about six months ahead of schedule on its cost-cutting plan and the integration of Credit Suisse, Chief Executive Sergio Ermotti said on Tuesday at a conference hosted by Bank of America.
“In terms of our cost reductions, the unwinding and simplifications of non-core assets managed in extinction, we are, I would say, about six months ahead of our forecasts,” said Sergio Ernotti.
“I would say our trajectory is good. And honestly, I think things are going well,” the banker added.
The CEO said UBS had legally completed its merger with Credit Suisse, with 80 regulators around the world giving their approval.
“This was a prerequisite for starting the next stage of our cost reduction plan,” said Sergio Ernotti.
Cost reductions linked, for example, to the integration of customer data could nevertheless take time to materialise, the banker warned.
“You will not see the impact of cost reductions until late 2025 or early 2026, because we continue to operate two banks, two systems, two infrastructures,” explained Sergio Ernotti.
UBS is also gaining market share in the foreign exchange and equity sectors, as well as for its investment bank, particularly in the United States, the executive added.
“In terms of volatility, the environment was favorable in the second quarter,” said Sergio Ernotti, although he believed that the third quarter would be “a little more complicated” for M&A activity.
(Report by Oliver Hirt, written, by Corentin Chappron, edited by Blandine Hénault)
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