In a significant development for the Swiss banking sector, UBS has announced the successful completion of the merger between its domestic unit, UBS Switzerland AG, and Credit Suisse's Swiss operations, Credit Suisse (Schweiz) AG.

The merger, finalised on 1 July 2024, marks a crucial step in the integration process following UBS's acquisition of Credit Suisse last year.

As part of the merger, Credit Suisse (Schweiz) AG has been deregistered from the Commercial Register of the Canton of Zurich and has ceased to exist as a separate entity. UBS Switzerland AG has now assumed all rights and obligations of the former Credit Suisse entity.

Sabine Keller-Busse, President of UBS Switzerland, hailed the merger as a significant milestone, stating, "The completion of the Swiss entities' merger marks an important milestone in the integration of UBS and Credit Suisse." She further elaborated on the next steps, saying, "The migration of the majority of client transactions in Switzerland to the UBS platform will take place in 2025 and will be gradual, with tailored updates to our clients."

The merger is expected to facilitate the migration of clients and operations from Credit Suisse to the UBS platform, following specific business, client, and product requirements. While clients of Credit Suisse (Schweiz) AG have automatically become clients of UBS Switzerland AG, they will continue to interact with UBS using existing Credit Suisse platforms and tools for an interim period, except where specifically communicated otherwise.

Keller-Busse emphasised the bank's commitment to its clients, saying, "As the integration progresses, our clients will be able to access the capabilities and support of the combined firm. We will continue to focus on providing our clients with comprehensive services to achieve their financial goals and acting as a strong pillar of economic support in Switzerland."

In a related development, André Helfenstein, chief executive officer of Credit Suisse (Schweiz) AG, has decided to leave the bank following the merger. Keller-Busse acknowledged Helfenstein's contributions, stating, "Since the acquisition of Credit Suisse by UBS, André has made a substantial contribution to the stabilisation of Credit Suisse's business and has been committed to our clients and our employees throughout."

The merger is expected to accelerate UBS's plans to streamline operations, with analysts estimating that more than 30,000 jobs could be cut globally. In Switzerland alone, UBS has already announced plans to axe 3,000 jobs.

While the merger strengthens UBS's position in the Swiss financial market, it has also sparked debates about the bank's size and influence. Despite recommendations from Switzerland's antitrust watchdog for further scrutiny, the country's financial regulator has ruled that the takeover does not create competition concerns.

As UBS moves forward with the integration process, the bank faces the challenge of balancing its expanded operations while maintaining client trust and navigating regulatory scrutiny in its home market.

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