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Karin Keller-Sutter announces a shift in decision-making regarding capital backing for UBS subsidiaries, now to be determined by Parliament and potentially the electorate, rather than the Federal Council. This change follows a Parliamentary Commission of Inquiry's emphasis on the importance of capital adequacy for financial stability. The Swiss National Bank and FINMA support a 100% capital backing, which could impose an additional $25 billion requirement on UBS, with a referendum likely if the Federal Council's proposals are significantly weakened.
EFG International's CEO, Giorgio Pradelli, saw his salary rise by 35% to CHF 7.4 million in 2024, reflecting the bank's successful year with a profit of CHF 321 million. The Executive Board's total remuneration increased by nearly 50% to CHF 20.9 million, while the Chairman's fee remained at CHF 1.58 million.
EFG International's CEO Giorgio Pradelli saw his salary rise to CHF 7.3 million in 2024, a 35% increase from the previous year, reflecting the bank's strong performance with a profit of CHF 321 million. The Executive Board's total remuneration also surged by nearly 50%, reaching CHF 20.9 million. Shareholders will vote on the remuneration report at the upcoming Annual General Meeting on March 21.
UBS faces potential relocation or becoming a takeover target if the Swiss Federal Council imposes stringent capital requirements, estimated at 20 to 25 billion. A compromise may involve a risk limit on the investment bank, allowing UBS to maintain a capital requirement of 10 to 15 billion while managing risks effectively.
EFG International reported a profit of CHF 321 million for 2024, with client assets under management rising to CHF 165.5 billion and net new assets of CHF 10.1 billion, a significant increase from the previous year. The bank's cost/income ratio improved slightly to 72.9%, and it successfully onboarded new client advisors, raising assets per advisor to CHF 348 million. Additionally, four new members are proposed for the Board of Directors, and a dividend increase to 60 centimes per share is suggested.
André Helfenstein, the former CEO of CS Switzerland, has secured new roles on the Board of Directors for the Gaydoul Group and Amag Leasing AG, marking his transition from banking to other sectors. His experience in corporate finance is expected to enhance capital procurement and leasing operations. Additionally, he will join the Baloise Board of Directors at the next Annual General Meeting, following the establishment of his consulting firm, Metis e4i GmbH.
Beat Röthlisberger, head of Postfinance, aims to invest CHF 25 billion in Swiss SMEs to fill the financing gap left by Credit Suisse's collapse. However, he requires political support to amend the Postal Organization Act, which currently prohibits Postfinance from granting corporate loans. Despite structural challenges, Röthlisberger believes this move could enhance competition and provide reasonably priced financing for SMEs.
UBS faces significant challenges in its Global Wealth Management division, particularly in the USA, where the cost/income ratio soared to 92.4%. Despite managing $2 trillion in assets, profitability remains low, with 61% of advisors generating only 19% of pre-tax profits. The bank aims to improve its pre-tax profit margin to 15% by 2027, but the path to achieving economies of scale remains unclear, compounded by a recent outflow of new money in the Asia-Pacific region.
UBS reported a net profit of $800 million for the fourth quarter, exceeding expectations, despite a $100 billion drop in assets under management. The Global Wealth Management division attracted $18 billion in new money, falling short of the anticipated $24 billion. CEO Sergio Ermotti highlighted the bank's strong performance and commitment to clients, while shareholders will receive a 29% higher dividend for 2024.
UBS CEO Sergio Ermotti criticized proposed capital adequacy regulations at the World Economic Forum, calling them "exaggerated" and detrimental to competitiveness. He opposed the idea of 100% capital backing for foreign subsidiaries, labeling it an "extreme overreaction" that could harm Switzerland's status as a financial hub. Ermotti reaffirmed UBS's commitment to operating from Switzerland and highlighted the bank's goal of saving $13 billion, with $7.5 billion already achieved through IT efficiencies.
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