UBS CEO - Strategy For Unit That 'Nearly Destroyed' The Bank Is The Correct One

Sergio Ermotti

UBS CEO Sergio Ermotti said he’s confident his strategy of having a 'focused' investment bank is correct.

'It’s the right model to drive the long-term success of UBS', Ermotti told investors at a presentation in New York Tuesday.

Bloomberg reports that that he gave examples of successful collaboration between the investment bank and UBS’s other businesses and said it wouldn’t be in the interests of shareholders to speed up the reduction of assets through sales.

Knight Vinke Asset Management, a shareholder based in New York, said in an open letter before UBS’s annual general meeting last month that ownership of the investment bank, which 'nearly destroyed UBS' during the financial crisis, could be transferred to employees and managers, while the job of reducing investment-bank assets could be contracted out.

UBS CEO Says Current Strategy on Investment Bank Is Right

Reuters reports Monday that UBS's private banking head also hit back against a shareholder's call to hive off the investment bank, saying the units work together to serve wealthy private clients.

Zeltner repeated that the Swiss bank aims to align the wealth business more closely with the securities unit.

He said the private bank uses more services than ever from the streamlined investment bank, run by Andrea Orcel.

UBS doesn't want to hive off investment bank

image: © UBS

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