UBS Chief Executive Sergio Ermotti said the Swiss bank has no plans to spinoff or list parts of its business, like rival Credit Suisse is preparing for its «Swiss universal bank» by the end of next year.
Credit Suisse unveiled plans to list a minority stake in the unit, which includes part of its private bank and business with corporate and institutional clients in Switzerland, in October as part of wider strategic plan including job cuts, raising capital, and scaling back investment banking.
Sergio Ermotti denied any similar plans at UBS, marking another divergence in strategy between Switzerland’s two largest banks. «We believe our organization in terms of a holding company and an operating company to support divisionally- and globally-driven activities is important,» the CEO of UBS told a media briefing.
Ermotti sees a lot of value
«I believe that there is no intention on our side to pursue partial disposal of any business or legal entities including Switzerland,» Ermotti said.
«I think that there is a lot of value for our shareholders and for our model to keep things together in respect to helping the efficient management of our group.»
Both banks have developed so-called Swiss entity banks separate from other, riskier operations as a result of too-big-to-fail requirements in Switzerland following the financial crisis and bailout of UBS in 2008.
No to take over of Deutsche
By the same token, Ermotti also said UBS «don’t need to think about a transformational deal, there is enough growth out there,» in response to a tongue-in-cheek question about whether UBS could take over rival Deutsche Bank, where former SG Warburg and UBS banker John Cryan is restructuring the German bank.
«We are extremely happy with how our business is developing, our capital position and everything, but only through time can we really create value,» he said. «The fundamentals of our business and the underlying growth of wealth management are extremely compelling.»
