UBS’s Chairman Vows to Shrink Credit Suisse’s Investment Bank

UBS Group AG Chairman Colm Kelleher said he will rein in Credit Suisse Group AG’s investment bank, a unit that has racked up losses in recent years.

(Bloomberg) — UBS Group AG Chairman Colm Kelleher said he will rein in Credit Suisse Group AG’s investment bank, a unit that has racked up losses in recent years.

“Let me be very specific on this: UBS intends to downsize Credit Suisse’s investment banking business and align it with our conservative risk culture,” Kelleher said Sunday at a press conference announcing the deal. 

The combined investment banks of UBS and Credit Suisse won’t have more than 25% of the total entity’s risk-weighted assets over time, Kelleher said. That ratio was about 30% at Credit Suisse at the end of 2022. 

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