ZURICH (Reuters) – UBS Chief Executive Sergio Ermotti on Monday laid out some of the risks to the bank’s continued integration with former rival Credit Suisse, while also discussing his own future, generative AI and whether the creditor had become too big for Switzerland.
Below are some of the key comments Ermotti made during his interview at a Reuters journalists event in Zurich:
* CREDIT SUISSE INTEGRATION
“Today, it’s still two banks. Somehow, psychologically, it’s still not easy,” he said, “but I’m positively surprised by how quickly we’re now running a bank together.”
* COMBINING CULTURES OF TWO BANKS
“There aren’t that many differences… I think Credit Suisse and UBS already shared a lot of common values,” he said.
“From the beginning we have said that we are open to hearing different points of view, but one thing is certain: the operating model we will adopt is the UBS operating model.”
* RISKS OF TECHNOLOGICAL INTEGRATION
“The real risk is having to delay the realization of synergies,” said the president of Switzerland’s largest bank.
“By integrating just 300 Credit Suisse applications out of 3,000 applications, we are truly reducing the risk of IT integration risks.”
* FALL BACK IN EMBRACING ARTIFICIAL INTELLIGENCE
“Yes, the risk exists, but we are aware of this risk,” said Ermotti.
“We have already executed 100 advanced AI technology projects, half between front and back (end), so we are in control.”
“When I say that we will save 13 billion, I say that we will reinvest part of these few billion to strengthen our processes and our businesses.”
* COST SAVINGS AND WORK CUTS
“It’s a painful exercise. The way we achieve cost reductions in our industry is inevitable. It will be reductions in headcount,” he said.
“We will reinvest to strengthen our systems, our processes and our business.”
* UBS AND ITS SWISS HOME
“I don’t believe we are too big for Switzerland,” said the UBS CEO.
“I think that while I fully understand that an easy statistic to compare is our balance sheet versus the country’s GDP, I would say that when we look at all the data, not just in terms of the bank, but also the Swiss economy and what we do, you would easily see that Switzerland is a country that punches above its weight in many dimensions.”
* AFTER THE CREDIT SUISSE CRASH
“I believe that in order to understand all the issues that need to be addressed going forward, it is necessary to do a proper autopsy,” Ermotti said.
“It is very, very important not to allow these debates to turn into forward-looking demands or solutions that take away responsibility and accountability.”
*INFLATION
“Rates will not fall if inflation is not under control,” said Ermotti, “and if there is one issue that concerns me, it is that if inflation does not fall, I really see not only an economic consequence, but I also fear a social consequence.” .
(Reporting by John Revill and Noele Illien; Editing by Tomasz Janowski)
