UBS Retains 190 Bank Branches in Switzerland

UBS announces it will keep 190 bank branches in Switzerland, emphasizing its dedication to customer service and community engagement across the nation.

The head of UBS Switzerland, Sabine Keller-Busse, has announced that approximately 190 bank branches will remain operational across the country following the full integration of Credit Suisse, projected for 2026. During the bank's annual investor conference on Wednesday, Keller-Busse, who serves as the president of the executive board of UBS Switzerland, revealed that the merger process will commence in the first quarter of 2025, when 85 branches from both UBS and Credit Suisse will be consolidated.

Keller-Busse emphasized that the selection of branch locations will be meticulously determined, ensuring that by 2026, the number of branches will mirror the pre-takeover count of UBS, which stood at around 190. Currently, Credit Suisse operates approximately 95 branches within Switzerland.

In her remarks, Keller-Busse outlined a strategic approach to restore profitability levels post-takeover, focusing on maintaining an appropriate cost structure while simultaneously pursuing growth in key business areas and optimizing the balance sheet. The medium-term objective is to achieve an adjusted return on equity of approximately 19% within the Swiss business division, a figure that currently sits at 14.7% for the first half of 2024, down from 19.5% prior to the Credit Suisse acquisition in 2022.

The integration has not come without its challenges, as UBS Switzerland's expenses surged nearly 50% to CHF 1.27 billion in the second quarter. This spike in costs has significantly impacted the cost-to-revenue ratio, which ballooned from 51.6% in the same quarter last year to a staggering 61.4%. It is noteworthy that Credit Suisse was only accounted for in the financials for one month during the second quarter of 2023, following its takeover in June.