UBS to Keep Credit Suisse’s Swiss Business, Retire Its Brand

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UBS Group AG will keep Credit Suisse’s domestic bank and fully integrate it, overriding local criticism that a merged entity will hold excessive sway over the country’s financial system.

UBS and Credit Suisse will continue to operate separately in the country until their legal merger next year, UBS said in a statement Thursday. The lender will keep using the Credit Suisse brand and operations until it has moved the former rival’s clients onto its own systems, which is expected to happen in 2025, it said.

The Swiss business has been Credit Suisse’s crown jewel, a profitable anchor while the rest of the firm lurched from crisis to crisis over the past years. UBS had long signaled its preference to keep it, but political concerns about its potentially dominant role at home had complicated the decision. The decision to integrate it was made easier after UBS voluntarily gave up a safety net provided by the government.

The combination of UBS and Credit Suisse creates a domestic giant in Switzerland, with analysts at Citigroup previously estimating that the new bank would account for about 35% of domestic deposits, 31% of corporate loans and 26% of mortgages. It will compete with banks such as Raiffeisen and ZKB, a cantonal lender, as well as more than 200 other firms.

 

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