UBS outlines new operating model, leadership

Ahead of formally integrating Credit Suisse, UBS unveiled its intended operating model and leadership team.

With the deal expected to close in a matter of weeks, UBS explained it intends to keep the companies and brands separate.

It explained each institution will continue to have its own subsidiaries and branches, serve its clients, and deal with counterparties and the UBS board will hold overall responsibility for the consolidated group.

Pending further integration, Credit Suisse AG will continue to rely on its established governance and risk control frameworks, though some new policies will be put in place to ensure that UBS Group has effective oversight, UBS added.

The combined firm will operate with five business divisions, seven functions and four regions, and each will be represented by a group executive board member, all of whom will report to UBS Group chief executive Sergio Ermotti.

As part of the changes, UBS made a series of leadership appointments including Todd Tuckner to succeed Sarah Youngwood as chief financial officer and Credit Suisse chief executive Ulrich Körner to join the UBS group executive board.

Tuckner joined UBS in 2004 and was most recently chief financial officer and head of business performance and risk management for global wealth management.

He has held various leadership roles across finance in the US and Switzerland and will also be appointed to the group executive board.

Tuckner replaces Youngwood, who decided to leave the firm after the transaction.

Going forward, Körner will be responsible for ensuring Credit Suisse's operational continuity and client focus, while supporting the integration process, UBS said.

It further appointed previous chief operating officer and UK country head of asset management Michelle Bereaux to the role of group integration officer, Mike Dargan to group chief operations and technology officer, and Stefan Seiler as group head of human resources and corporate services.

Meanwhile, Beatriz Martin Jimenez will become head of non-core and legacy as well as president EMEA while keeping her role as UBS UK chief executive and group treasurer until a successor is named.

Ermotti commented that the change represents a pivotal moment for UBS, Credit Suisse, and the entire banking industry.

"Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service," he said.

"This transaction will allow us to offer attractive returns to our shareholders and give us capacity to further invest and grow. With the new operating model and leadership team, UBS is well-equipped to build on its existing strength and the successes of the past decade."

Upon transaction close, all Credit Suisse executive board members and permanent guests who are also division and function heads will report to both their respective UBS executive board member and Körner.

"The integration of the businesses and legal entities will take time. But adding Credit Suisse to UBS's highly capital-accretive business model, diversified revenue streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors and the the economies we serve."