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UBS’s Ermotti Sees Risk of Delay in Integrating Credit Suisse IT

(Bloomberg) — The biggest risk in UBS Group AG’s integration of Credit Suisse’s technology systems is a delay that would push back the realization of cost savings from the merger, Chief Executive Officer Sergio Ermotti said. 

UBS is bringing over about 300 out of 3,000 Credit Suisse applications and is only transferring the data that’s needed for the combined bank, Ermotti said at an event in Zurich on Monday. Delay in the procedure could lead to higher costs in the realization of synergies, he said.  

Read More: UBS on $1 Billion Quest to Avoid Deutsche Bank’s IT Missteps

UBS has flagged technology integration as one of its biggest potential headaches for this year, along with the dozens of regulatory approvals needed to finalize the takeover that was brokered last March as Credit Suisse headed for bankruptcy. Ermotti reiterated that he has committed to stay until the end of 2026 or early 2027, when the fusion is complete, he said.

Read More: UBS Hints CEO Ermotti Could Stay After Credit Suisse Integration

The executive said that some 30% of the client migration from Credit Suisse to UBS systems would start toward the end of this year, starting with Singapore, Hong Kong and other Asian centers. The bank ultimately plans to re-invest some of the total $13 billion in cost savings that it targets from the merger, he said. 

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SWI - a branch of Swiss Broadcasting Corporation SRG SSR

SWI - a branch of Swiss Broadcasting Corporation SRG SSR