On Monday, UBS announced that it has completed the emergency acquisition of its struggling rival, Credit Suisse, transforming into a Swiss banking giant with a balance sheet of $1.6 trillion and enhanced wealth management capabilities. In a commentary on the largest deal in the banking sector since the 2008 global financial crisis, UBS CEO Sergio Ermotti and Chairman Colm Kelleher stated in an open letter published by Swiss newspapers, "This marks the beginning of a new chapter." Ermotti warned of the "challenges" in the upcoming months as UBS continues to integrate Credit Suisse, a process expected to take three to five years.
The group will manage assets worth $5 trillion, granting UBS, the world's largest wealth management bank, a leading position in key markets that would have taken years to grow and reach. The merger also concludes a 167-year history for Credit Suisse, which has faced scandals and losses in recent years. Together, the two banks employ 120,000 people worldwide; however, UBS has already indicated plans to cut jobs to capitalize on the merger and reduce costs. UBS is set to record substantial profits in the second quarter after acquiring Credit Suisse for a fraction of what is considered its fair value.
