UBS Group has announced that Credit Suisse CEO Ulrich Koerner will join the executive board of the combined bank once it closes its takeover of its Swiss rival. Todd Tuckner will replace Sarah Youngwood as chief financial officer. The leadership reshuffle follows the government-orchestrated rescue of Credit Suiss, which UBS agreed in March for 3 billion Swiss francs ($3.4 billion) and said it would assume up to 5 billion francs in losses as part of a rescue that is backed by as much as 250 billion francs of state support.
The legal close of the acquisition is expected within the next few weeks, and the combined entity will operate as a "consolidated banking group." The Credit Suisse brand will operate independently for the "foreseeable future" as UBS integrates the business in a "phased approach" following the bank's dramatic emergency rescue.
Koerner, who took over at ailing bank Credit Suisse in July 2022 and immediately launched a massive strategic overhaul aimed at reversing chronic loss-making and risk management failures, expressed confidence about joining forces with UBS Group.
"I am excited about this new chapter for both banks," Koerner said. "Together we can create an even stronger institution focused on delivering value to our customers and shareholders."
Todd Tuckner's appointment comes after years serving on various high-level positions within major financial institutions before landing his current role at UBS.
"Todd brings extensive experience in finance, risk management, and capital markets operations," said Ralph Hamers, CEO of UBS Group AG. “His expertise makes him well-suited to lead our newly enlarged organization through these challenging times.”
As part of their integration strategy, both banks have established five divisions (Wealth Management; Investment Banking; Asset Management; Retail & Corporate Banking; and Global Support Functions) alongside seven functions and four regions. Credit Suisse will continue to maintain its brand identity during the transition period.
This merger is expected to create a powerhouse in the global banking world, strengthening their positions as key players in European financial markets. The Swiss government's support of this rescue deal illustrates its commitment to ensuring stability within the country's banking sector.
"We are pleased that our efforts have helped facilitate this important transaction," said Guy Parmelin, President of the Swiss Confederation. "Our priority has always been preserving market confidence and safeguarding Switzerland's reputation as a thriving financial center."
With an ambitious roadmap set for both banks, it remains to be seen how smoothly these changes will unfold and how they'll impact customers, shareholders, and employees alike in the long run. But one thing is clear: UBS Group AG is determined to emerge from this process stronger than ever before.