The Swiss banking giant UBS takes a new step in the integration of Credit Suisse by formalizing on Monday the merger of their Swiss branches, which kicks off work to absorb the clientele of its ex-rival.
UBS Switzerland AG and Credit Suisse (Schweiz) AG officially merged on July 1, the Swiss branch of Credit Suisse being removed from the commercial register of the canton of Zurich, the banking giant said in a press release.
Credit Suisse clients in the Alpine country automatically become UBS clients on this date, even if the migration of clients to UBS platforms and tools will take place gradually, the press release specifies.
“The migration of the majority of client transactions to Switzerland will take place in 2025 and will be gradual,” specifies Sabine Keller-Busse, who heads UBS’s activities in Switzerland.
However, she emphasizes that the merger of these Swiss entities constitutes “an important step” in the integration of Credit Suisse.
Huge project being carried out at a brisk pace
The Swiss branch of Credit Suisse, which includes retail banking for clients in Switzerland, is considered the nugget of the fallen bank. This is the branch perceived as the most stable of Credit Suisse.
With this merger of the Swiss branches, André Helfenstein, the director of Credit Suisse (Schweiz) AG, has decided to leave the bank, the press release states.
The merger of the two largest banks in Switzerland is a huge undertaking given their size and the speed with which the operation was carried out to avoid a bankruptcy of Credit Suisse.
Redemption on March 19, 2023
On March 19, 2023, UBS agreed to buy its former rival under pressure from the Swiss authorities to prevent it from going under. The buyout was completed urgently in June 2023 to stabilize Credit Suisse.
But the merger is taking place in several stages, with the two banks initially continuing to operate separately while the integration process was being put in place.
At the end of May 2024, UBS had already taken another important step with the merger of the holding companies at the head of the two banks.
afp/ebz
