UBS president explores merger with Credit Suisse, Banca y Finanzas

Mon, September 14, 2020 – 5:59 pm

[ZURICH] The presidents of UBS and Credit Suisse are exploring a possible merger to create one of Europe’s largest banks, Inside Paradeplatz reported, citing unidentified people within the two lenders.

The project, dubbed Signal, is being driven by UBS president Axel Weber, who is working on it with his Credit Suisse counterpart, Urs Rohner, according to the blog. Weber has discussed the idea with Swiss Finance Minister Ueli Maurer, and an agreement could be reached early next year, according to the report.

Spokesmen for the two banks declined to comment.

The European banking industry is under pressure to consolidate as the coronavirus pandemic adds to the headwinds of negative interest rates. CaixaBank and Bankia de España are exploring a merger to form the country’s largest lender and reactivate consolidation in one of the European economies most affected during the pandemic.

Weber would likely stay as president of the combined company, so the chief executive is likely to come from Credit Suisse, according to the report. Banking regulator Finma has been briefed on the deliberations, Inside Paradeplatz said.

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A merger could result in job cuts equivalent to between 10 and 20 percent of the workforce, or 15,000 or more worldwide, according to the report.

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