Swiss bank UBS is making significant strides in its cost-saving initiatives and the integration of Credit Suisse, according to CEO Sergio Ermotti, who spoke on Tuesday. Ermotti revealed that the bank is about six months ahead of schedule in these efforts. He also noted that UBS is gaining market share and that its investment bank is progressing as anticipated.
"When I assess the cost progress and the wind-down of non-core legacy assets, we are approximately six months ahead of schedule," Ermotti stated during a Bank of America conference. "I believe we are on a positive trajectory, and honestly, I think things are going quite well."
Last year, UBS acquired Credit Suisse for 3 billion Swiss francs ($3.54 billion) in a government-backed takeover. This move left Switzerland with a single global bank, whose balance sheet is nearly twice the size of the country's annual economic output. This has raised concerns about UBS's market dominance.
Ermotti mentioned that UBS has successfully completed the legal entity mergers of Credit Suisse, securing approvals from 80 regulators worldwide. "This is a crucial step towards the next phase of cost reductions," he added.
UBS's shares responded positively to the update, rising by 3.5% in morning trading. Ermotti observed a constructive market environment in the second quarter, although he acknowledged that the third quarter might present more challenges in terms of dealmaking.
"Overall, I remain highly confident that we are effectively monetizing all the investments we have made," Ermotti concluded.
