UBS Brings Back Sergio Ermotti as CEO to Lead $3.2B Credit Suisse Takeover

Ermotti, who was CEO of the bank from 2011 to 2020, is credited with helping UBS recover from the massive losses it incurred during the 2008 financial crisis

UBS has rehired Sergio Ermotti as chief executive, about two years after he left the Swiss bank, to lead the banking giant following its $3.2 billion takeover of distressed rival Credit Suisse.

Ermotti, who will assume his new role on April 5, will replace outgoing CEO Ralph Hamers, who will remain with the bank in an advisory role to help with the transition period.

The appointment was made “in light of the new challenges and priorities facing UBS after the announcement of the acquisition,” UBS said.

Ermotti, who was CEO of the bank from 2011 to 2020, is credited with helping UBS recover from the massive losses it incurred during the 2008 financial crisis. He is currently chairman of Swiss Re, one of the world’s largest reinsurance companies.

The decision indicates that Ermotti’s knowledge is going to be more important for the bank over the next couple of years than Hamers’ plans, which had gained little traction since his arrival.

UBS said Hamers “has agreed to step down to serve the interests of the new combination, the Swiss financial sector and the country.”

Earlier this month, Swiss regulators jumped in by ironing out a deal and paving the way for Credit Suisse to be absorbed by UBS amid a crisis of confidence in the banking system.

Pictured: Sergio Ermotti