UBS is in danger of becoming one of those banks where the rewards accrue to the internal politicians rather than the external rainmakers. The hopeful headline that accompanied today’s first quarter results – UBS Expands Leadership Team” – cannot conceal the fact that the departure of Markus Granziol, the former SBC executive who chaired of UBS Warburg, was unexpected. He leaves at the end of August, but will effectively be replaced long before then by his successor as CEO of UBS Warburg, John Costas.
Other changes include the elevation to the Group Executive Board of John Fraser, Chairman & CEO of UBS Global Asset Management; Clive Standish, Chairman & CEO of UBS Asia/Pacific; Mark Sutton, President and COO of UBS PaineWebber; and Marcel Rohner, newly appointed CEO of UBS Wealth Management & Business Banking, the new name for the UBS Switzerland business group. Marcel Rohner is currently COO and Deputy CEO of UBS Private Banking.
Stephan Haeringer, currently CEO of UBS Switzerland, will become Deputy President of the Group Executive Board and will join the Corporate Center. Here he will have responsibility for furthering UBS’s integrated model which is designed to bring clients the best services and expertise from across the firm. He will also play a key role in promoting the Group’s risk and cost control cultures.
Georges Gagnebin, currently CEO of UBS Private Banking, will become Chairman of the UBS Wealth Management & Business Banking business group, focusing particularly on development of the private banking franchise and on deepening relationships with key private banking clients. He will retain management of UBS’s five independent private banks.
“These changes demonstrate more visibly than ever UBS’s commitment to meritocracy and global partnership. I am confident that this further deepening of cross-business teamwork will accelerate our growing momentum. At the head of an integrated group with huge ambition, this leadership can tackle the future with great confidence,” said Peter Wuffli, President of UBS.
Alain Robert (Swiss clients) and Raoul Weil (International clients) will lead UBS’s Private Banking businesses. Eugen Haltiner will lead the Business Banking Switzerland unit, UBS’s highly successful domestic banking business in Switzerland for individual and corporate clients, currently known as the Private & Corporate Clients unit.
In addition, the Private Banking units will also now cover affluent individual clients currently served by the Private & Corporate Clients business. There will be no change to these clients’ advisory relationships, and no disruptions to their service.
“Wealth management is a core focus of UBS and we are continually looking for ways to accelerate the growth of both our domestic and international franchises,” said Marcel Rohner.
As well as the expansion of the Group Executive Board, the Group Managing Board, representing the senior partnership level of the firm, will be expanded to a membership of 50 from the current 36.
Meanwhile, UBS disclosed a first quarter net profit of CHF 1,363 million, 14% less than the same quarter a year earlier. Pre-goodwill, and adjusted for gains from the sale of Hyposwiss, profit was CHF 1,574 million, 17% less than the same quarter a year earlier.