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UBS's 2024 annual report reveals that auditors Ernst&Young raised concerns about the bank's internal controls over financial reporting, particularly regarding issues inherited from the Credit Suisse takeover. As of December 31, 2024, UBS was deemed to have ineffective internal controls, a rare adverse opinion that signals potential misstatements in financial statements and could misrepresent the bank's financial health. UBS continues to address these internal control challenges stemming from the merger, which complicates its assessment process.
UBS has removed its diversity targets from its 2024 annual report, shifting its focus to meritocracy. Previously, the bank aimed for 30% of management roles to be filled by women and to increase ethnic minority representation among U.S. financial advisors. A spokesperson emphasized the commitment to a diverse workforce while prioritizing merit in hiring and promotions.
UBS has removed specific diversity targets for women and ethnic minorities from its 2024 annual report, shifting its focus to meritocracy. The bank aims for 30% of managerial roles to be held by women and 18.8% of financial advisors to be from ethnic minorities by 2025, despite the absence of these targets in the latest report. Additionally, UBS has revised its climate goals, delaying its net zero asset alignment target to 2030 and extending its deadline for reducing greenhouse gas emissions to 2035.
UBS has removed diversity targets from its annual report, shifting its focus to meritocracy in hiring and promotions. While aiming for 30% of director-level positions to be filled by women and increasing ethnic minority representation among financial advisors in the US, the bank emphasizes a commitment to a diverse workforce based on skills and experience. Additionally, UBS has revised its climate goals, extending its net greenhouse gas emissions reduction deadline to 2035.
The Swiss Social Democrats are calling for UBS to bolster its hard core capital by $40 billion to avert a potential banking crisis following Credit Suisse's collapse. However, the Swiss People's Party has dismissed these extensive capital requirements. Should parliament reject the proposal, the SP suggests that UBS may need to be broken up or relocate its headquarters.
Switzerland's finance ministry has decided that the capital requirements for UBS will be determined by parliament, rather than through ordinances. This shift reflects the importance of capital backing for foreign holdings of systemically important banks, emphasizing financial stability and economic considerations. Meanwhile, other capital requirements for such banks will still be set by the Federal Council, with a public consultation proposal expected by the end of May.
UBS has expressed concerns over potential stricter capital requirements in Switzerland, warning that such measures could undermine its competitiveness and threaten its business model. Compliance chief Markus Ronner highlighted that the bank already holds significant capital due to the Credit Suisse acquisition and faces additional costs that could impact profitability. The Swiss government plans to introduce new regulations to mitigate the risk of future banking crises, pending parliamentary approval.
UBS CEO Sergio Ermotti warned that higher capital requirements for the bank, deemed systemically relevant, would lead to increased costs for companies and households. He urged Swiss authorities to maintain current regulations, arguing that UBS's ability to rescue Credit Suisse demonstrates the adequacy of existing capital strength. Ermotti also emphasized the need for a cost-benefit analysis regarding regulatory changes, asserting that Switzerland's financial center ambitions are at odds with stricter capital demands for foreign subsidiaries.
UBS CEO Sergio Ermotti warned that higher capital requirements for the bank, deemed systemically relevant, would lead to increased costs for companies and households. He urged Swiss authorities to maintain current regulations, arguing that UBS's ability to rescue Credit Suisse demonstrates the adequacy of existing capital strength. Ermotti also emphasized the need for a cost-benefit analysis regarding regulatory changes, asserting that Switzerland's status as a financial hub could be jeopardized by stricter requirements for foreign subsidiaries.
UBS CEO Sergio Ermotti warned that higher capital requirements for the bank, deemed systemically relevant, would lead to increased costs for companies and households. He urged Swiss authorities to maintain current capital standards to support the nation's financial sector and avoid risks similar to those faced by Credit Suisse. Ermotti also dismissed a recent study suggesting UBS benefits from a state guarantee, claiming it relied on outdated data.
Oliver Hirt
People
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