UBS CEO Says Conditions at Credit Suisse Have 'Stabilized'

By Pierre Bertrand

UBS Chief Executive Officer Sergio Ermotti said that he thinks Credit Suisse isn't seeing outflows anymore and that conditions at the Swiss Bank have stabilized since March's banking turmoil.

Credit Suisse, which is being absorbed by peer UBS to save it from collapse, saw customer deposits decline by 67 billion Swiss francs ($74.94 billion) and saw CHF61.2 billion in net asset outflows in the first three months of the year, the bank reported on April 24, saying at the time that such outflows had moderated but hadn't reversed.

But Mr. Ermotti told attendees of the Swiss Media Forum on Friday that he didn't think outflows were continuing and that the situation at the bank has stabilized.

He also told the forum in Lucerne that UBS was on schedule to close its acquisition of Credit Suisse within three months from its March 19 agreement to acquire the bank. He added that he hopes the conditions at Credit Suisse leading up to the events in March would be examined.

Mr. Ermotti's comments were first reported by Reuters and confirmed to Dow Jones Newswires by a UBS spokeswoman. The spokeswoman wouldn't comment further.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

May 12, 2023 08:59 ET (12:59 GMT)

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