2023-08-07 11:38:52
According to a report by the Reuters news agency, UBS is expected to start downsizing in Hong Kong in the course of the week. Around 80 percent of the employees in investment banking there
Credit Suisse, which was taken over in June, is likely to lose their jobs, according to two people familiar with the matter from the agency. That leaves only about 20 members of the 100-strong team. Most of the Credit Suisse investment bankers in Asia are based in Hong Kong. Credit Suisse and UBS declined to comment.
Since the announcement of the emergency takeover in March, UBS has repeatedly made it clear that it wants to reduce the risks in Credit Suisse’s investment banking. This division has repeatedly been responsible for high losses in recent years. These, combined with failures in other parts of the business, eroded trust in the bank to the point that customers siphoned off in the billions and the government forced a marriage with the larger UBS.
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Since then, UBS has been feverishly preparing for the merger at an operational level. As early as Monday, the group could announce a restructuring of its investment banking, writes Reuters. The aim of the conversion is to bring teams from the two institutes together. This applies, for example, to the bankers responsible for the areas of healthcare, consumer goods/retail, financial investors and stock placements.
The team that deals with mergers and acquisitions in the technology, media and telecommunications (TMT) sectors is also set to be revamped. According to insiders, the company is in talks to appoint Laurence Braham, who joined UBS from Barclays earlier this year, as global co-head of technology. CEO Sergio Ermotti wants to increase UBS’s market share in the transaction business, especially in the USA.
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At the end of the month, UBS is likely to provide further information on the integration of Credit Suisse as part of the publication of the figures for the second quarter. The most important question still open is the future of CS’s Swiss business. More than 30,000 of the last 120,000 jobs in the combined group could be lost.
UBS apparently wants to streamline business in other regions as well. According to the “Brazil Journal”, the real estate business of Credit Suisse in Brazil is to be sold. The money house is currently in talks with potential buyers for the area, which currently has assets under management of an estimated CHF 1.79 billion. UBS and CS declined to comment.
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