UBS Group AG announced a significant restructuring of its executive board on Thursday, marking a pivotal moment in the Swiss banking giant's ongoing integration of Credit Suisse, its fallen rival acquired in a dramatic rescue last year. This overhaul is part of UBS's broader strategy aimed at sustainable and strategic growth, particularly focusing on the Americas and Asia-Pacific regions.
The executive shake-up includes the division of the global wealth management role between Iqbal Khan and Rob Karofsky. Khan, who will now oversee the Asia-Pacific region, and Karofsky, who will lead operations in the Americas, are both strong contenders to succeed CEO Sergio Ermotti. This move represents the first time a divisional president will be based in Asia-Pacific, reflecting UBS's commitment to expanding its influence in this key market.
Sergio Ermotti, who returned to UBS last year to navigate the complexities of the Credit Suisse takeover, is expected to step down by early 2027. "The appointments to the Group Executive Board we are announcing today will allow us to continue to progress on our integration journey and realize the expected synergies and efficiencies, while putting even more emphasis on our long-term priorities and growth prospects, particularly in the Americas and Asia-Pacific," Ermotti stated.
The reshuffle also brings new faces to the executive board. George Athanasopoulos and Marco Valla will serve as co-presidents of the investment bank, and Damian Vogel will step in as the global chief risk officer. These appointments replace outgoing board members, including Credit Suisse CEO Ulrich Körner, UBS Asia-Pacific President Edmund Koh, and UBS Americas Regional President Naureen Hassan.
The leadership changes come at a crucial time as UBS prepares for the legal completion of the merger of its and Credit Suisse's parent companies. This merger, set for Friday, will enable UBS to tackle more complex integration tasks such as combining IT systems, migrating clients from Credit Suisse, and reducing the combined workforce of over 110,000 employees.
Vontobel analyst Andreas Venditti described the reshuffle as more extensive than anticipated, highlighting the strategic importance of these appointments. "With these changes, Iqbal and Rob are the prime candidates for UBS's CEO job," Venditti noted.
The transition also involves the retirement of several key figures. Ulrich Körner, the former CEO of Credit Suisse, will retire later this year, and Christian Bluhm, the current risk officer, will be replaced by Damian Vogel, though Bluhm will stay on in an advisory role. This strategic exit aligns with UBS's vision of a streamlined and more efficient executive board.
Naureen Hassan's departure is notable as she is one of several female executives to leave the bank in the past year. Beatriz Martin, president of UBS Europe, Middle East, and Africa, remains a potential candidate for Ermotti's successor, underscoring the bank's ongoing focus on internal talent for leadership positions.
Ermotti has firmly indicated his preference for an internal candidate to succeed him, reinforcing this during a recent interview with Reuters. "Our goal is to really increase dramatically the chances that we can have an internal candidate," he emphasized, ruling out the possibility of appointing an outsider as his successor.
UBS's strategic reorganization is also a response to its acquisition of Credit Suisse, which was brokered by Swiss authorities to prevent the collapse of the 167-year-old institution and safeguard the Swiss economy. This integration process is crucial for UBS as it seeks to realize the synergies from the merger and solidify its market position globally.
The bank's broader vision includes significant investments in the Americas and Asia-Pacific regions. This is reflected in Iqbal Khan's relocation to Asia and Rob Karofsky's leadership in the U.S., signaling UBS's commitment to leveraging growth opportunities in these markets. As part of its sustainable, strategic growth strategy, UBS aims to enhance its wealth management services and expand its client base in these regions.
