UBS boss sees functioning competition in corporate client business
Published: Tuesday, Jun 25th 2024, 15:30
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Swiss industry plays an important role in UBS's business model. This was emphasized by UBS CEO Sergio Ermotti on Tuesday during his appearance at the Industry Day in Bern. The industry is a key factor for the success of the Swiss economy and also for UBS.
"We are a globally positioned major bank, but that does not mean that we are in conflict with Swiss SMEs," said Ermotti in a panel discussion at the industry meeting organized by the Swiss Engineering, Electrical and Metal Industries Association (Swissmem). "We want to make a contribution to ensuring that they operate successfully as companies and are doing well."
Ermotti rejected criticism that UBS could use its strong presence in the corporate client business to raise prices for banking services. "We will prove that this concern is unfounded." And Ermotti was pleased that the Competition Commission (ComCo) confirmed that competition in the Swiss banking center is working.
Isolated price increases
Ermotti admitted that there had been price increases in the corporate client business in individual cases. However, this primarily affected non-profitable business relationships that UBS had taken over from Credit Suisse. In addition, the financing costs for banks have also risen due to higher interest rates and increasing regulatory costs.
Ermotti is convinced that it is hardly possible to undermine the well-functioning competition in the Swiss financial center anyway. The competitive situation in Switzerland has not changed significantly with the merger of UBS and CS. "231 banks have become 230 banks, while foreign banks are also increasingly considering entering the Swiss market."
With a view to possible additional requirements for the capitalization of the major bank UBS, Ermotti called for his bank not to be "punished" with higher capital requirements. The lessons of the CS crisis had shown that thick capital buffers do not sufficiently protect a bank that no longer enjoys confidence. In any case, the banks do not need more regulation, but at most better quality regulation.
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