Swiss Banking Giant UBS Intends to Broaden Business Footprint in the US

By Jace Dela Cruz

Mar 18, 2024 01:56 AM EDT

Swiss banking giant UBS intends to seek merger and acquisition opportunities in the United States in the years ahead. Its chairman, Colm Kelleher, revealed this in an interview with the NZZ newspaper on Sunday.

A sign and logo of the Swiss giant banking UBS is seen in Lausanne on February 6, 2024. Swiss banking giant UBS said on February 6, 2024 it would hand shareholders up to 1 billion US dollars in share buybacks as it posted a smaller-than-expected quarterly loss stemming from the costs of absorbing fallen rival Credit Suisse.
(Photo : FABRICE COFFRINI/AFP via Getty Images)

UBS Looks to Expand in the US

According to Reuters, the chairman noted that the bank wanted to expand its US wealth-management business through potential mergers and acquisitions in three or four years.

He clarified that the focus would be only on wealth management for now. UBS recently faced criticism after it took over former rival Credit Suisse last June. 

It faced criticism over a $1.6 trillion-plus balance sheet almost twice the size of the Swiss economy, which prompted the country to review its regulation of systemically important banks.

However, the chairman expressed reluctance when confronted with suggestions for UBS to be subject to higher capital requirements. He told NZZ that excessively high capital could adversely affect shareholders and customers "because banking services become more expensive."

READ NEXT: UBS Starts Slashing Asia Private Banking Positions as Earnings Fall: Report

UBS and Credit Suisse Merger

Following the merger with Credit Suisse, former boss Sergio Ermotti returned for a second term. According to Kelleher, Ermotti is suitable for the challenging task of integrating Credit Suisse.

The acquisition of Credit Suisse signifies UBS's strategic direction towards expanding its capital-light businesses.

READ MORE: Investors Led by Ex-Trump Official Invest $1 Billion to Troubled US Bank

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics