sabine keller-busse faces challenges in succession race at ubs

Sabine Keller-Busse faces numerous challenges as the head of UBS Switzerland, particularly within the Personal & Corporate Banking (P&C) sector. She must consolidate UBS's traditional banking operations while integrating the newly acquired business following the merger with Credit Suisse. This requires strategic acumen and adept public relations skills due to increased scrutiny from stakeholders.

Challenges in Merging Operations

Keller-Busse's position is further complicated by the competitive landscape within UBS itself, as she prepares for a potential succession to Group CEO Sergio Ermotti. Iqbal Khan, co-head of Global Wealth Management, is also a key player in this scenario, overseeing wealth management operations in Asia. The interplay between these two leaders highlights the challenges of shared responsibilities and the quest for recognition in a highly profitable segment of the bank.

The complexities of merging these operations are compounded by diverging interests among clients, employees, and shareholders. Keller-Busse's ability to navigate these challenges will be pivotal in determining her future within the organization.

Attribution of Success and Turf War

UBS is primarily known for its wealth management services, particularly in Switzerland. Keller-Busse must share credit for the successes in Swiss Wealth Management with Khan. Swiss Wealth Management generated significant revenues in 2023, accounting for nearly 14% of the bank's global total, with a pre-tax profit of $1.209 billion. However, the financial reporting structure complicates the attribution of success between Keller-Busse and Khan.

Income from this segment is allocated to Global Wealth Management, where Khan is responsible. In contrast, Keller-Busse's performance is primarily evaluated based on her management of P&C, which has seen a decline in return on attributed equity. This disparity in focus could lead to perceptions of a turf war between the divisions.

Restoring P&C and Integration Challenges

Keller-Busse's immediate goal is to restore P&C to a return on attributed equity of at least 19%. Achieving this target is critical for the bank's financial health and her potential succession to Ermotti. The integration of Credit Suisse's corporate client business presents a formidable challenge, as the public debate surrounding this consolidation has been contentious.

Keller-Busse's ability to navigate these challenges will be pivotal in determining her future within the organization. Managing P&C goes beyond financial metrics; effective communication and stakeholder management are crucial. Her success in this multifaceted environment will be closely watched by internal and external observers.

Conclusion

In summary, Sabine Keller-Busse faces significant challenges and opportunities at UBS. As she navigates the complexities of merging operations, managing stakeholder expectations, and striving for financial targets, her leadership will shape the future of UBS Switzerland. Her ability to navigate these complexities could position her as a strong candidate for the top role at UBS.

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