UBS CEO Vows No Business Model Change Amid Capital Talks
Sergio Ermotti, CEO of Swiss banking giant UBS, has reassured stakeholders that a resolution is in sight regarding the bank's capital requirements in Switzerland. Despite investor pressure and uncertainty surrounding regulation, Ermotti has ruled out changes to UBS's business model and confirmed the bank's commitment to Switzerland.
UBS is facing a capital shortfall of 15% in Switzerland, but Ermotti is hopeful that Swiss authorities will consider the bank's submission favourably. The negotiations, taking place outside the Board of Directors and the Chief Compliance Officer, involve political figures such as SVP faction chief Thomas Aeschi, who are working towards compromise solutions.
UBS has not threatened to leave Switzerland, despite speculation. The bank addressed journalists recently, reiterating its stance on not adopting a stop-and-go dividend policy despite uncertainty about future capital requirements. Changes to the Capital Adequacy Ordinance are not expected before 2027.
Meanwhile, Swedish investment company Cevian Capital, a major UBS shareholder, has discussed the possibility of relocating UBS's headquarters. However, UBS's Chief Compliance Officer, Markus Ronner, has clarified that the planned regulatory changes are not secondary to the discussion on the capitalisation of foreign subsidiaries.
UBS is navigating a complex situation regarding its capital requirements in Switzerland. While the bank faces pressure from investors and uncertainty from regulatory changes, it remains committed to Switzerland and its current business model. The outcome of negotiations and regulatory changes will shape UBS's future in the coming years.
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