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UBS is pushing ahead with plans to kill off the Credit Suisse brand, but will keep its domestic bank alive, according to reports.
UBS’s leadership is set to announce within days that the bank has set a goal of phasing out the Credit Suisse brand in Switzerland, Bloomberg reports, citing people familiar with the matter, but will hold on to the unit.
The future of Credit Suisse’s local business had been uncertain ever since Swiss authorities orchestrated an enforced takeover of what was UBS’s main rival in the country in March.
READ Could other big bank mergers follow successful UBS-Credit Suisse rescue?
According to reports, executives at UBS had mulled whether or not to spin out of the domestic unit, but the move to consign the Credit Swiss moniker to history was widely expected given the multitude to scandals that had rocked the bank in the lead-up to its shotgun sale.
In June, UBS chief executive Sergio Ermotti told a firm-wide meeting that retaining the domestic business was the “base-case scenario” rather than hiving it off — despite criticisms that a merged entity would hold excessive sway over the country’s financial system.
However, he was clear that running both brands simultaneously was “not even imaginable”, and UBS began replacing signage in international offices over the summer.
UBS declined to comment.
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