Swiss banking giant UBS is set to reassure its shareholders that its acquisition of Credit Suisse can work. The move comes after the Swiss authorities announced UBS's surprise acquisition of the smaller lender to prevent further banking turmoil after Credit Suisse came close to collapse. The move angered many shareholders and the Swiss public, with a survey finding that a majority of Swiss did not support the deal. UBS is now faced with the mammoth task of integrating Credit Suisse without undermining its strengths. To navigate this challenge, UBS has rehired Sergio Ermotti as CEO, a Swiss banker with experience rebuilding the bank after the global financial crisis.
At the bank's annual general meeting, outgoing CEO Ralph Hamers and Chairman Colm Kelleher will address shareholders. This comes a day after Credit Suisse executives faced their own shareholders, with Chairman Axel Lehmann apologising for leading the bank to the verge of bankruptcy. For 2022, UBS reported a net profit of $7.6 billion and strong inflows in wealth management, the company's flagship division. However, with the acquisition of Credit Suisse, the bank will need to navigate potential challenges in integrating the smaller lender. Wednesday's meeting will provide shareholders with the opportunity to air their views, although many may be hesitant to rock the boat with UBS on a steady course.
Overall, the acquisition of Credit Suisse represents the biggest bank rescue since the great financial crash. While the move has angered shareholders and the Swiss public, UBS is taking steps to reassure investors that the acquisition can be successful. The bank's rehiring of Sergio Ermotti as CEO is a promising move, given his experience in rebuilding UBS after the global financial crisis. However, navigating the integration of Credit Suisse will be a mammoth task, and shareholders will be watching closely to see how UBS manages this challenge.
