UBS CEO Sergio Ermotti sees acquisition as an option for US growth
The bank has been working for years to turn around its wealth business in America
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[ZURICH] UBS Group CEO Sergio Ermotti said that the firm “cannot rule out” an acquisition when looking at growth paths for its business in the Americas.
“We may want to do an acquisition. I don’t know about any big organisations that can rule out acquisitions,” he said at a conference in the Swiss town of St Gallen on Wednesday (May 6).
UBS does not necessarily need a deal to achieve its expansion goals, which include growing wallet share among US clients, he added.
The bank has been working for years to turn around its wealth business in the US. Last month, the UBS Americas business showed signs of revival, with client inflows of US$5.3 billion for the first three-month of the year after three consecutive quarters of outflows.
In March, UBS received the green light for a full-blown US bank license. It’s planning to roll out payments, checking and savings account services, and a wider selection of other products.
Separately, the Swiss bank recently revamped the compensation model for US financial advisers, raising their payouts and benefits in an attempt to retain and hire more staff in the region.
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UBS chairman Colm Kelleher has previously said that the bank would eventually look to buy another US wealth manager, once the integration of Credit Suisse is complete. That integration process, initiated after the takeover of its former rival more than three years ago, is now in its final stages.
Succession pool
Ermotti also addressed the question of his successor as CEO, saying he was happy with the internal pool of candidates.
Asked if he would be interested in the chairmanship, he answered: “I’m focused on my current role.”
Ermotti returned to UBS to lead the bank through its 2023 rescue of Credit Suisse. The bank has previously guided that he will remain CEO at least until early next year, with potential replacements coming from both within and outside the bank. BLOOMBERG
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