Geneva (EFE).- The president of UBS, Colm Kelleher, inaugurated today the annual meeting of shareholders of the bank highlighting the recent purchase, at the request of the Swiss Government, of Credit Suisse, a “historical step but we never wanted to reach” and which, he assured, will provide great opportunities for the entity.
The takeover of Switzerland’s second bank by the first “marks a new beginning and great opportunities for the combined entity, as well as for this country as a financial center,” he told shareholders gathered in the St Jakobshalle multipurpose room in Basel.
The Irish businessman acknowledged that Credit Suisse, a bank born 167 years ago, “was an icon of the Swiss economy, a key entity for the country’s economic development, and a globally respected player.”
Kelleher affirmed that the purchase decided on March 19 “is the first merger between two global banks of systemic importance”, and their integration will be a challenging task, for which it has been decided to appoint Sergio Ermotti as the new CEO starting today. replacing Ralph Hammers.
“Our strategy is clear and it has not changed with the acquisition of Credit Suisse”, stressed the president of UBS, who on the other hand stated that the integration of this bank will be one of the main focuses in the next strategies.
Kelleher noted that the Credit Suisse purchase will accelerate UBS’s expansion into the wealth management sector, where it has experienced strong growth, especially in the US and Asia.
On the other hand, the president reiterated that UBS will reduce the capital invested in its investment banking until it falls below 25% of risk assets.
The Irishman announced that a 10% increase in dividends will be proposed at the meeting, up to 55 franc cents per share.
At the same time, he noted that UBS has decided to suspend the share buyback program due to the Credit Suisse acquisition, although he noted that it will be resumed “as soon as possible.”
UBS, which last year reported a net profit of 7.6 billion francs (6.9 billion euros), acquired Credit Suisse for 3 billion francs (3.02 billion euros) to save it from possible bankruptcy, a purchase that has aroused criticism among politicians and public opinion of the Central European country.
The UBS meeting comes a day after Credit Suisse’s, probably the last of this second bank, in which its president Axel Lehman apologized for the crisis that brought the entity to the brink of collapse and many shareholders intervened to unleash their disappointment and anger against the board.