UBS revamps board as it prepares to complete Credit Suisse deal

UBS has said Credit Suisse chief executive Ulrich Körner will join its executive board as part of a shake-up ahead of the Swiss bank completing the takeover of its domestic rival.

In a series of appointments announced on Tuesday, UBS also said Todd Tuckner, currently finance chief of its wealth management division, would succeed Sarah Youngwood as chief financial officer.

Youngwood, who joined the bank last year, will leave after the transaction closes.

All existing Credit Suisse executive board members who are also division heads will report to Körner and their respective UBS executive board members, UBS said.

The new appointments will come into effect when the transaction closes, which is expected in a matter of weeks.

The revamp comes as UBS is preparing for a costly integration of Credit Suisse, a deal that combines two systemically important financial institutions in one of the most significant banking deals since the 2007-08 financial crisis.

Körner, who was drafted in as chief executive of Credit Suisse last year to help revive the bank’s fortunes, has previously worked at UBS. Körner will be “responsible for ensuring Credit Suisse’s operational continuity and client focus”, UBS said.

The Swiss-German, who has spent the past 25 years working at both institutions, will support the integration process, which will be led by Michelle Bereaux, a 23-year UBS veteran.

UBS chief Sergio Ermotti said on Tuesday that the combined group would “solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service”.

Beatriz Martin Jimenez, head of the UK for UBS and group treasurer, will be head of non-core and legacy — responsible for overseeing parts of the business that are being wound down — as well as head of Emea. She will retain her UK role, but a successor as group treasurer will be named in due course.

After the deal is completed, the two businesses will initially operate as separate entities, with each serving their own clients and dealing with counterparties.

UBS said that Credit Suisse would continue to use its governance and risk control frameworks, though UBS would implement new policies to boost its oversight of the business.