UBS

By Adria Calatayud

UBS Group AG said Wednesday that it has decided to appoint Sergio P. Ermotti as its new chief executive replacing Ralph Hamers, and said the change is a result of its planned acquisition of rival Credit Suisse Group AG.

The appointment of Mr. Ermotti--who was UBS's CEO in the aftermath of the global financial crisis and stepped down in 2020 after nine years in the role--will become effective on April 5, the bank said.

Mr. Hamers agreed to step down to serve the interests of the combination with Credit Suisse, UBS said. He will remain at UBS and work alongside Mr. Ermotti during a transition period to ensure a successful closure of the deal, the bank added.

Mr. Hamers became UBS's CEO on Nov. 1, 2020, taking over from Mr. Ermotti.

UBS said its board made the decision as a result of the new challenges it confronts following its agreement to take over Credit Suisse reached earlier this month.

"While the acquisition will support UBS's existing strategy, it imposes new priorities on us," UBS Chairman Colm Kelleher said in a statement.

Mr. Ermotti's experience repositioning UBS after the global financial crisis made him ideally placed for the integration of Credit Suisse, UBS said. During his first tenure as CEO, Mr. Ermotti shrunk its investment bank and allowed it to regain the trust of clients and stakeholders, it said.

Mr. Ermotti is currently chairman of Swiss Re AG. The reinsurer said separately that he will step down from the role after the company's annual general meeting on April 12 and a short handover period to fully concentrate on his role at UBS.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

March 29, 2023 01:44 ET (05:44 GMT)

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