A new chapter for UBS and Swiss finance

Early last week, we announced the legal close of the historic rescue of Credit Suisse, done at the behest of the federal government.

In less than three months, we have achieved what would, in normal circumstances, have taken over a year to accomplish between planning, announcement and approvals. I want to thank all our people, and the many authorities at home and abroad, who were involved in getting us to this important milestone in record time.

As the real work begins and we are one combined bank, I can say unequivocally that I have never been more optimistic about the prospects for UBS – and for the future of the Swiss financial industry and its important role in the economy.

While none of us would have chosen the circumstances that led us here, we Swiss should take pride in the way the country was able to act decisively to prevent potential further financial turmoil. Our government did not have to implement a resolution plan according to the too-big-to-fail regulation, nationalize Credit Suisse or call a foreign institution to the rescue. With UBS, it found a uniquely Swiss solution, and did so over a single weekend.

At UBS we all recognize the extraordinary responsibility we have been handed.

The task ahead is challenging and will take time. We must remain humble and focused while also communicating openly as we make some difficult choices and thoughtfully consider the future of Credit Suisse’s Swiss business. But I am confident that from the union of the two banks we can build something of enduring value for clients, shareholders, employees and all of the communities where we operate.

The balance sheets of both banks have been massively reduced. At UBS, we learned some critical lessons the hard way. During my previous term as CEO we massively de-risked the investment bank and put it at the service of our clients in the global wealth management business and the Swiss universal bank. We simplified our structure and put a prudent culture at the core of everything we do.

With these strategic adjustments, which we will now implement at Credit Suisse, the combined institution represents less risk, and more opportunity, for Switzerland.

Without question, UBS will remain a major bank, but our size and business model are fit for the purpose for which they are intended: to act as an engine of credit creation and prosperity for our nation in a globalized economy.

Switzerland is prosperous, stable, sustainable and innovative – while also conservative in its approach to risk. The UBS business model embraces many of these characteristics.

We are focused on our clients – whether they are individuals and families, entrepreneurs or companies – and on helping them secure and grow their wealth and meet their goals. A strong, competitive and sustainably profitable bank is ultimately the best protection for taxpayers.

We cannot be the home to so many successful multinational companies without a robust financial center to meet their needs. Our internationally competitive SMEs, which are crucial for employment, also need to finance their exports. They, too, must be able to hedge their risks and strengthen their operations through targeted acquisitions abroad.

Today there are still almost 250 banks in Switzerland, and competition among them has increased significantly. UBS and Credit Suisse have a smaller slice of the pie today than they did 20 years ago.

The Swiss financial sector itself, consisting of strong banks and insurers with diversified business models, is an important pillar of the national economy. Together, they make up over 5% of overall employment and generate almost 10% of GDP. The financial sector also generates 40% of overall corporate tax revenue.

Our ambition at UBS is therefore to take responsibility and continue to be a strong partner – for the economy, for the financial center and the people of our nation. And while there may be important lessons to be considered from recent events, we should refrain from hasty fixes. That’s why I welcome a 360-degree analysis to get a proper understanding of which elements of regulation and its implementation worked, and which did not.

What we do know from day one is that trust, like profitability, cannot be regulated.

It is the outcome of hard work over a long period of time that puts clients and their needs first.

By joining forces with our many talented colleagues from Credit Suisse last week, we are in a unique position to provide our clients an enhanced global offering, broader geographic reach and access to even greater expertise. Now is the time to focus on executing our strategy, to create a bank that our clients, employees, investors – and all of Switzerland – can be proud of.?

This article originally appeared in German in Tages Anzeiger , in French in Tribune de Geneve , and in Italian in Corriere del Ticino .