2024 is set to be a crucial year for the takeover of Credit Suisse by UBS, as the two banks merge operations across more than 50 countries. UBS CEO Sergio Ermotti highlighted the migration of IT systems as the biggest risk to the merger. To mitigate this risk, UBS plans to move the majority of Credit Suisse’s business onto its own platforms, keeping only about 10% of the smaller bank’s IT applications. Ermotti emphasized the importance of executing the deal successfully next year.

The merger between UBS and Credit Suisse, the largest banking merger in history, has instantly made UBS the world’s second-largest wealth manager, behind Morgan Stanley. Ermotti stated that the deal has brought seven years’ worth of new client money to UBS. However, the merger is not without challenges. Credit Suisse has been described as “structurally loss-making” and has a significant number of outstanding legal cases due to past scandals and compliance failures.

Ermotti acknowledged that Credit Suisse’s strong focus on clients can be both a strength and a weakness. He noted that some decisions were made to keep clients happy, even if they were not in the best interests of the bank overall. The CEO sees the merger as an opportunity to leverage Credit Suisse’s capabilities and strengthen UBS. Additionally, the combination has enhanced UBS’s investment bank in the United States, positioning it as a credible alternative to domestic players.

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Information	Details
Geography	Europe
Countries
Sentiment	positive
Relevance Score	1
People	Sergio Ermotti
Companies	US banks, Morgan Stanley, UBS, Credit Suisse
Currencies	None
Securities	None