BASEL, Switzerland – The chairman of major Swiss bank UBS issued a warning Wednesday that the institution may face difficult strategic choices as Switzerland moves forward with stricter banking regulations following last year’s Credit Suisse collapse.
Speaking at UBS’s annual shareholder meeting in Basel, Chairman Colm Kelleher criticized the Swiss government’s proposed banking regulations, describing them as a significant threat to how UBS operates while providing minimal benefits for overall financial system stability.
The banking executive emphasized that while UBS remains deeply connected to Switzerland, the bank will not reduce its operations and continues pursuing expansion opportunities across Asia and the United States.
“We want to remain headquartered in Switzerland,” Kelleher stated during the meeting.
“In the meanwhile, it is our duty to evaluate appropriate measures to address, if confirmed, the negative effects of these extreme proposals,” he added.
The proposed regulatory changes stem from Switzerland’s response to Credit Suisse’s failure in 2023, which resulted in UBS purchasing the troubled bank through a government-orchestrated emergency acquisition. Swiss officials are expected to provide additional details about their capital requirement proposals before the end of April.
Kelleher noted that the scope of UBS’s future stock repurchase programs will depend heavily on whatever regulatory framework Switzerland ultimately adopts. He also praised CEO Sergio Ermotti’s work overseeing the Credit Suisse merger, which is approaching completion.
“Sergio will see the integration through to completion and then focus on driving growth and sustainably higher returns,” Kelleher explained. “He will also lead UBS through this period of regulatory uncertainty.”
Recent reports suggest Ermotti may continue leading the bank through late 2027, as the institution has not yet identified a clear internal candidate to succeed him.
