Sergio Ermotti was previously at the helm of UBS for nine years. Now he faces the Herculean task of tackling the takeover of troubled Credit Suisse.
While Sergio Ermotti's return to the top of UBS has been well-received on the stock market, there is no question of exuberance or euphoria.
Uncertain times call for a steady hand. It is undisputed that Ermotti knows UBS and the Swiss banking industry like no one else, having already demonstrated his assertiveness in the years-long restructuring of UBS.
Muted Applause
Compared to his successor and predecessor, Ralph Hamers, he is well-connected not only in the domestic financial industry but also politically.
The reaction of the UBS share price on Wednesday morning is surprisingly restrained given this drastic change in leadership. The price is up around 2.5 percent to 18.20 francs while the SMI is trading 0.6 percent higher.
Effective Executor
«With this change of leadership, the bank is sending a clear signal that its focus is on the successful integration of Credit Suisse,» according to an analysis from ZKB. The banking analyst at the Cantonal bank saw the takeover of Credit Suisse as an opportunity for UBS from the start. Although the risks for the bank increased, they are more than offset by the potential benefits.
«With Ermotti, UBS is bringing on board a proven expert on the bank and an effective executor for the successful merger of the two banks,» is the conclusion.
