UBS announced on Tuesday that the CEO of Credit Suisse, Ulrich Koerner, will join the executive board. This is for the new joint entity. This will be once its emergency purchase of the fallen bank completes. The Swiss bank anticipates the legal close of the takeover within the next some weeks. The whole combined entity will work as a consolidated banking group.
The Credit Suisse brand will operate independently. The bank said in a statement that this is for the foreseeable future when UBS integrates the business in a phased approach.
The Swiss authorities had brokered the emergency buyout of the Credit Suisse Bank by UBS for $3.37 billion. This was for a weekend in March. The crisis of confidence among depositors and shareholders threatened to shake up the 167-year-old bank.
UBS had confirmed that it will manage the 2 separate companies upon closing the deal. Furthermore, each institution shall continue to operate its subsidiaries and branches. The UBS board of directors and executive board will also be responsible for the consolidated banking group.
UBS said that with the knowledge of Ulrich Koerner in both organizations, he shall be responsible for ensuring Credit Suisse Bank’s operational continuity and client focus. He would also play a supportive role in the integration process.
Todd Tuckner, the UBS veteran, will be the chief financial officer for the group. He will take over from Sarah Youngwood. She decided to step down after the transaction closed.
The firm will operate with 7 functions, 5 business divisions, 4 regions, and the Credit Suisse Bank. Each shall be represented by one board member reporting to the CEO of UBS, Sergio Ermotti. Sergio Ermotti said this was a pivotal moment for Credit Suisse, UBS, and the banking industry.
Sergio Ermotti further said in a statement that together, they will solidify and represent the Swiss model for finance worldwide. This will be one that is capital-light, anchored with stability, less reliant on taking a risk, and high-touch service. Moreover, adding the Credit Suisse Bank to UBS’s highly capital-accretive business model shall benefit the clients, the economies they serve, the wider financial system, employees, and investors. They shall benefit from disciplined risk management, diversified revenue streams, and balance sheet for all seasons.
About Ulrich Koerner
Ulrich Koerner was born on October 25, 1962. He is a German-Swiss businessperson. Ulrich Koerner attended the Lyceum Alpinum in Zuoz, Switzerland, for schooling. Then he passed from the Staatliches Ludwigsgymnasium in Saarbrucken, Germany.
Moreover, Ulrich Koerner has a Master of Arts and a Ph.D. in business administration. This is from the University of St. Gallen, Switzerland. Ulrich Koerner, in 1989, began his career with Price Waterhouse, Zurich. He was an auditor there. From 1993 to 1998, he worked as a management consultant with McKinsey & Company, Zurich.
Ulrich Koerner joined the Credit Suisse Bank as CFO for Switzerland in 1998. In 2006, he became CEO of Credit Suisse Switzerland. In March 2021, he was named the CEO of Asset Management of Credit Suisse. Then in July 2022, Ulrich Koerner took over as the Chief Executive Officer of Credit Suisse AG.