UBS CEO Ermotti: ‘we never threatened to leave Switzerland’

UBS: Ermotti, 'we never threatened to leave' Keystone-SDA

Sergio Ermotti, CEO of Swiss bank UBS, says he is confident that a good solution will be found regarding the bank’s capital requirements in Switzerland.

+Get the most important news from Switzerland in your inbox

The company addressed journalists on the day of the presentation of its official response to the consultation launched by the Swiss government on the amendment of the Capital Adequacy Ordinance. The planned regulatory changes are not secondary to the discussion on the other topic of the capitalisation of foreign subsidiaries, explained Markus Ronner, the company’s Chief Compliance Officer, who is responsible for the regulatory compliance of all activities.

At stake is 15% of the capital. However, UBS is confident that the authorities will now carefully examine the submitted document. “Our hope is based on the fact that Switzerland has always adopted reasonable regulations,” the executive added.

For his part, Ermotti confirmed that there is clear pressure from UBS investors due to the current uncertainty surrounding regulation in Switzerland. Recently, for example, Cevian Capital, a Swedish investment company and major shareholder of the institution, speculated through the media about the relocation of UBS’s headquarters.

Ermotti emphasised, however, that such discussions did not come from the bank itself. “We have never threatened to leave Switzerland,” the 65-year-old said. UBS certainly has options for reacting to the impending tightening of regulations, but these depend heavily on the form the regulation will take.

Changes to the Capital Adequacy Ordinance could come into force no earlier than 2027, it was stated at the press briefing. Despite the uncertainty about future capital requirements, UBS still does not intend to adopt a stop-and-go dividend policy, Ermotti pointed out. “The markets know that we are able to generate capital at any time,” he said.

The chairman of the management also categorically ruled out a change in UBS’s business model due to the equity provisions. “A reduction in business activities is not an option for us,” he reiterated in response to a question on the subject, thus again confirming earlier statements.

Adapted from Italian by DeepL/jdp

How we work

We select the most relevant news for an international audience and use automatic translation tools to translate them into English. A journalist then reviews the translation for clarity and accuracy before publication.  

Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.

If you have any questions about how we work, write to us at [e-mail].

News