Credit Suisse’s CFO Dixit Joshi, COO Francesca McDonagh, and head of Swiss business André Helfenstein are expected to remain part of the bank’s executive team even after its merger with UBS, according to a report citing unnamed sources. However, Credit Suisse declined to comment on the report. UBS had agreed to take over Credit Suisse in March for CHF 3 billion ($3.37 billion), and the bank is reportedly working to close the deal by the end of May or early June. The bank is also reviewing options for Credit Suisse’s Swiss unit, including a potential IPO, while keeping the investment banking operations intact.
Credit Suisse CFO and COO Expected to Stay On Post UBS Merger
According to a report, Credit Suisse’s CFO Dixit Joshi, COO Francesca McDonagh, and head of Swiss business André Helfenstein are expected to remain part of the bank’s executive team even after its merger with UBS. The report cited unnamed sources familiar with the matter. The merger was agreed upon in March, with UBS set to take over Credit Suisse for CHF 3 billion ($3.37 billion), and assume up to CHF 5 billion ($5.6 billion) in losses. Credit Suisse declined to comment on the report, and UBS did not immediately respond to a request for comment.
Earlier this week, UBS CEO Sergio Ermotti said that the bank was working on closing the merger with Credit Suisse by the end of May or early June. The bank is also reportedly considering options for Credit Suisse’s Swiss unit, including keeping the investment banking operations intact while selling off the rest, potentially through an IPO.
The retention of key executives at Credit Suisse comes amid a period of significant change for the bank. Earlier this year, Credit Suisse lost billions of dollars due to the collapse of family office Archegos and the default of Greensill Capital. In response, the bank has announced a number of strategic changes, including a reduction in exposure to prime brokerage and the suspension of bonuses for top executives.
Overall, the merger between UBS and Credit Suisse is expected to create a banking giant with significant global reach. Both banks have a strong presence in Switzerland, with UBS currently the largest wealth manager in the world, and Credit Suisse not far behind. The merger is also expected to create cost synergies, which will be particularly important as the banking industry continues to grapple with low interest rates and other headwinds.
In conclusion, the report that key executives are expected to remain part of Credit Suisse’s executive team following its merger with UBS suggests a degree of stability for the bank as it continues to navigate a period of significant change. With the merger set to create a banking giant with significant global reach and potential cost synergies, the retention of experienced leadership could prove crucial to the success of the venture.
