UBS Group’s former chief executive Ralph Hamers and its chairman Colm Kelleher at the end of the banking company’s AGM in Basel, Switzerland, on Wednesday. Reuters
UBS Group’s former chief executive Ralph Hamers and its chairman Colm Kelleher at the end of the banking company’s AGM in Basel, Switzerland, on Wednesday. Reuters
UBS Group’s former chief executive Ralph Hamers and its chairman Colm Kelleher at the end of the banking company’s AGM in Basel, Switzerland, on Wednesday. Reuters
UBS Group’s former chief executive Ralph Hamers and its chairman Colm Kelleher at the end of the banking company’s AGM in Basel, Switzerland, on Wednesday. Reuters

UBS assures investors Credit Suisse takeover will pay off


  • English
  • Arabic

UBS executives sought to assure investors on Wednesday that Switzerland's largest bank can make its unexpected takeover of Swiss rival Credit Suisse work and pay off for its shareholders.

While describing the biggest bank rescue since the global financial crisis as a milestone for the industry and a major challenge for the bank, chairman Colm Kelleher told UBS shareholders it also meant "a new beginning and huge opportunities ahead for the combined bank and for the Swiss financial centre as a whole".

Last month, Swiss authorities announced that UBS would buy Credit Suisse in a shotgun merger to stem further banking turmoil after the smaller lender had come to the brink of collapse.

After a run on deposits, the Swiss government had turned to UBS, which agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), while the Alpine state put up more than 200 billion francs of support and guarantees.

Mr Kelleher told the bank's shareholder meeting in Basel that UBS was confident in its ability to successfully manage Credit Suisse's integration and that the combined bank would remain well capitalised.

"We believe the transaction is financially attractive for UBS shareholders," he said.

The hastily arranged rescue not only angered and unsettled shareholders but also many in Switzerland.

A survey by political research firm gfs.bern found a majority of Swiss did not support the deal that would create a financial institution with assets double the size of the country's annual economic output.

As shareholders expressed their frustration about being kept in the dark, with one calling it "an insult", some also voiced concerns about potential job losses and the new giant bank's adverse effect on competition.

Vice chairman Lukas Gaehwiler sought to quell such fears saying there were about 250 banks in the country and therefore enough competition.

He also said it was too early to speculate on jobs before the "Herculean task" of the merger had completed, which he expected to happen within a few months.

On Sunday, Swiss daily Tages-Anzeiger cited an unnamed senior UBS manager as saying that the workforce of the combined group could shrink by 20 to 30 per cent.

Mr Gaehwiler also said that "all options are on the table" concerning Credit Suisse's domestic business, which would continue to operate under its old brand in Switzerland for the foreseeable future.

Shareholders also took aim at the executives' pay and bonus packages, which made Ralph Hamers the best paid chief executive in Switzerland last year.

In contrast to its smaller rival, UBS had been on a steady course. It reported a net profit of $7.6 billion for 2022 and strong inflows in wealth management, the company's flagship division.

Looking at how to navigate the mammoth task of integrating Credit Suisse, the success of which Switzerland depends on, UBS has already taken the first steps.

Last week, the bank announced it had rehired Sergio Ermotti as chief executive to steer the massive takeover — a surprise move to take advantage of the Swiss banker's experience of rebuilding the bank after the global financial crisis.

Addressing shareholders for the last time as chief executive, Mr Hamers acknowledged the merger had led to new priorities for the bank, bringing a change at its helm.

"The acquisition of Credit Suisse will be a major challenge," he said, while echoing the bank's chairman in highlighting new opportunities.

"It is expected to create a business with more than $5 trillion in total invested assets," he said.

On Wednesday, UBS shareholders re-elected Mr Kelleher as chairman, as well as all existing members of the board of directors, and approved their and bank executives' compensation.

Last week, Swiss bank UBS rehired Sergio Ermotti as chief executive to steer the massive takeover. AP
Last week, Swiss bank UBS rehired Sergio Ermotti as chief executive to steer the massive takeover. AP

Wednesday also marked Mr Ermotti's first official day back in the job, although he did not attend the meeting.

It came a day after executives at Credit Suisse faced their own shareholders and chairman Axel Lehmann apologised for leading the bank to the verge of bankruptcy.

In the face of growing criticism, Switzerland's financial regulator deflected blame for the collapse of Credit Suisse, saying it had been quick to respond, calling instead for more powers to take lenders to task.

On Tuesday, Reuters also reported that the Bank of England had approved UBS's takeover of Credit Suisse in Britain, a key market for the Swiss lenders racing to close the rescue deal.

UBS also secured temporary approval from the EU antitrust regulators to complete its acquisition of Credit Suisse, but will still have to request clearance under EU merger rules, the European Commission said.

UAE SQUAD

Omar Abdulrahman (Al Hilal), Ali Khaseif, Ali Mabkhout, Salem Rashed, Khalifa Al Hammadi, Khalfan Mubarak, Zayed Al Ameri, Mohammed Al Attas (Al Jazira), Khalid Essa, Ahmed Barman, Ryan Yaslam, Bandar Al Ahbabi (Al Ain), Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmin (Al Wasl), Adel Al Hosani, Ali Hassan Saleh, Majed Suroor (Sharjah), Ahmed Khalil, Walid Abbas, Majed Hassan, Ismail Al Hammadi (Shabab Al Ahli), Hassan Al Muharrami, Fahad Al Dhahani (Bani Yas), Mohammed Al Shaker (Ajman)

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

New schools in Dubai
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

TEAMS

US Team
Dustin Johnson, Jordan Spieth
Justin Thomas, Daniel Berger
Brooks Koepka, Rickie Fowler
Kevin Kisner, Patrick Reed
Matt Kuchar, Kevin Chappell
Charley Hoffman*, Phil Mickelson*

International Team
Hideki Matsuyama, Jason Day 
Adam Scott, Louis Oosthuizen
Marc Leishman, Charl Schwartzel
Branden Grace, Si Woo Kim
Jhonattan Vegas, Adam Hadwin
Emiliano Grillo*, Anirban Lahiri*

denotes captain's picks

 

 

Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
The years Ramadan fell in May

1987

1954

1921

1888

War and the virus
Results

6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m

Winner: Ziyadd, Richard Mullen (jockey), Jean de Roualle (trainer).

7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m

Winner: Barney Roy, William Buick, Charlie Appleby.

7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m

Winner: Secret Advisor, Tadhg O’Shea, Charlie Appleby.

8.15pm: Handicap (TB) $175,000 (D) 1,600m

Winner: Plata O Plomo, Carlos Lopez, Susanne Berneklint.

8.50pm: Handicap (TB) $135,000 (T) 1,600m

Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass.

9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m

Winner: Gladiator King, Mickael Barzalona, Satish Seemar.

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
MATCH INFO

Inter Milan 2 (Vecino 65', Barella 83')

Verona 1 (Verre 19' pen)

The Bio

Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”

Holiday destination: “I like Paris very much, it’s a city very close to my heart.”

Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”

Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”

WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
%3Cp%3E%E2%80%A2%20Looming%20global%20slowdown%20and%20recession%20in%20key%20economies%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Russia-Ukraine%20war%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Interest%20rate%20hikes%20and%20the%20rising%20cost%20of%20debt%20servicing%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Oil%20price%20volatility%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Persisting%20inflationary%20pressures%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Exchange%20rate%20fluctuations%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shortage%20of%20labour%2Fskills%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20A%20resurgence%20of%20Covid%3F%3C%2Fp%3E%0A
UAE cricketers abroad

Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.

Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.

Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.

UAE currency: the story behind the money in your pockets
Updated: April 05, 2023, 3:12 PM`