UBS chief executive Sergio Ermotti is expected to leave his role – one of the most high-profile positions in global banking – in April 2027, the Financial Times reported on Tuesday.
The news comes as UBS pushes back against Swiss government proposals to strengthen banking rules, while also marking the start of the succession process for one of the most significant roles in global banking.
Ermotti, who returned to UBS in 2023 to oversee the emergency takeover of Credit Suisse, had previously led the Swiss bank from 2011 to 2020. At the time of his return, he committed to a three- to five-year tenure, taking charge of the complex integration and guiding the development of the combined group’s growth strategy.
[See also: Even rejected, Swiss wealth tax debate offers lessons for UHNW clients]
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‘The timing makes sense both operationally and strategically,’ senior private banker at Dreyfus Banquiers, Edward Turner told Spear’s. ‘With the integration of Credit Suisse largely completed, UBS has reached a natural turning point. This creates space to refocus on its core businesses while positioning itself more assertively against large non-Swiss competitors in global wealth and asset management.’
The bank, which declined Spear’s request for a comment on the reports, aims to complete the merger of the two lenders ‘substantially’ by the end of 2026, and Ermotti is expected to step down once that process is finished.
In the meantime, the focus is already turning to who will succeed Ermotti as chief executive.
Aleksandar Ivanovic, head of asset management and a member of the executive board since March 2024, has emerged as a leading contender, having impressed UBS management with his performance in the division.
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Other executives reported to be in the mix include Robert Karofsky, president of UBS Americas, Asia Pacific chief Iqbal Khan, and Bea Martin, who was named chief operating officer in October.
[See also: Meltdown: A thorough analysis of the rise and turbulent fall of Credit Suisse]
UBS shares have jumped nearly 30 per cent over the past year, reflecting broader investor enthusiasm for European banks and optimism that the Swiss government may ease its proposed capital rules for the country’s largest lender. The proposals, introduced after Credit Suisse’s 2023 collapse, would require UBS to hold substantially more capital, particularly against risks in its foreign subsidiaries, a move the bank says could tie up an additional $24 billion.
UBS has made clear that while it supports measures to strengthen Switzerland’s financial system, it believes the planned capital requirements ‘are not proportionate, targeted or internationally aligned,’ the bank stated in its response to the government proposals published on Monday.
In its response, the bank argued that the proposals ‘do not adequately reflect the lessons learned’ from the Credit Suisse crisis and could undermine the competitiveness of the Swiss financial centre.
For Turner, ‘competitiveness should not be viewed solely through the lens of capital efficiency.’ He added: ‘Switzerland is known for its stability, competence, and consistently high service standards in wealth management. Preserving these qualities is essential to maintaining Switzerland’s position as a trusted global financial centre over the long term. This is what ultimately differentiates Switzerland as a wealth management hub.’
According to UBS, its business model relies on integrated international operations, and insulating the parent bank entirely from risks in foreign subsidiaries would conflict with its global strategy. The bank also stressed that Switzerland already has one of the strictest regulatory capital regimes, and that its existing recovery and resolution plans have been deemed credible by regulators both at home and abroad.
Echoing this view, Turner emphasised that ‘stability and competitiveness go hand in hand.’ For Swiss banks to remain stable, they must also remain ‘internationally competitive,’ he said. ‘This balance is dynamic, particularly following the Credit Suisse takeover, and I am confident that the regulatory environment will continue to evolve accordingly, ensuring that the Swiss financial system can serve a broad and international client base.’
The regulatory debate has drawn reactions from across Switzerland’s political and financial spectrum. While the Swiss Bankers Association advocates for ‘proportionate, targeted regulation that is aligned with international standards,’ the right-wing Swiss People’s Party has signalled support for a compromise to keep UBS competitive internationally. Meanwhile, the centre-left Social Democrats and Green Party back the government’s proposals.
While the government has maintained a firm public stance, reports suggest a compromise is likely, with some rules expected to be eased and parliament leaning toward a more moderate approach than initially proposed.
