UBS Group AG Chief Executive Officer Sergio Ermotti said employees will get more clarity on reporting lines in the coming weeks, after the Swiss lender made several key appointments following its takeover of Credit Suisse Group AG.
(Bloomberg) — UBS Group AG Chief Executive Officer Sergio Ermotti said employees will get more clarity on reporting lines in the coming weeks, after the Swiss lender made several key appointments following its takeover of Credit Suisse Group AG.
UBS will clarify the responsibilities of 1,200 to 1,500 employees over the coming three weeks, Ermotti said at a conference in Zurich on Tuesday. The rest should follow in the next two months.
“We have reestablished the first two lines of responsibility,” Ermotti said.“In the next couple of months, there will be even more clarity.”
UBS appointed its key leadership team in May and a slew of other positions earlier this month, with almost all top roles being filled by existing management board members or long-term UBS senior leaders. It’s now in the midst of integrating Credit Suisse, a process Ermotti said was going well, with clients being supportive.
Only a fifth of the 160 leadership positions in the combined bank announced in June are coming from Credit Suisse. Chairman Colm Kelleher has made clear that the remaining Credit Suisse bankers would be put through a “culture filter” to weed out undesirable practices from the defunct bank.
The process of integrating the two banks will likely involve thousands of job cuts. Ermotti previously said that about 10% of Credit Suisse employees had left the bank in the past few months.
UBS is still in the process of reviewing business lines that don’t meet the criteria for risk and earnings that the lender has put in place. These businesses are likely to be banished to a portfolio of non-core and legacy assets, in a new unit set up to separate the good from the bad.
While UBS had originally planned to fully integrate Credit Suisse’s local unit, it later backtracked with Ermotti saying that all options were on the table, including a sale or a spin off.
The bank is due to report its second quarter results on Aug. 31.
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