UBS Nears the Finish Line in Credit Suisse Integration

UBS enters final IT integration phase with Credit Suisse, targets cost synergies by year-end. Bank also raises severe default forecast for private credit to 15%.

The operational merger of Credit Suisse into UBS is entering its final stages. A critical milestone is scheduled for the end of March, when UBS will begin decommissioning the legacy IT platforms of Credit Suisse. This move will conclude years of running costly, parallel systems, with the technical integration targeted for completion by year-end. Investors are watching closely, as this process brings the anticipated cost synergies firmly into view.

Risk Assessment Adjusted in Lending Unit

Beyond the integration, UBS strategists have revised their risk outlook for private credit. The bank's most severe scenario now projects potential default rates as high as 15%, an increase from a previous forecast of 13%. Analysts cite the potential for disruptive economic effects from artificial intelligence as a key driver. Currently, actual default rates in this portfolio remain between three and five percent.

Simultaneously, leadership changes are underway within the Global Lending division. Remi Mennesson, who led the unit for four years, is departing. Jean-Marc Botteri will assume the role on an interim basis. This division provides financing for wealthy clients, operating at the intersection of investment banking and wealth management.

Final Client Transfer Phase Underway

The bank's current focus is on the migration of international clients booked in Switzerland. While the transfer of domestic Swiss clients is nearly complete, one significant final migration event remains. Sabine Keller-Busse, Head of Swiss Business at UBS, recently confirmed the timeline at the FINANZ26 investor conference, noting that redundant Credit Suisse systems will be phased out starting in late March. This is expected to substantially reduce duplicate operating expenses.

Strategic Realignment Across the Atlantic

Concurrent with the systems integration, UBS is restructuring its US operations. Effective March 1, Lisa Golia will take leadership of the US wealth management advisor network. The former Morgan Stanley executive will be responsible for advisor leadership, recruitment, and compensation. Her predecessor, Mike Camacho, will now focus on strategic priorities, which include expanding the US bank license—a project for which the bank has already received conditional approval.

John Vander Zee steps into the new role of Chief Operating Officer for the market. Golia’s leadership team will be supported by five regional directors and Ben Firestein, who heads national sales.

The systematic shutdown of Credit Suisse's platforms by year-end will mark the operational conclusion of one of the most significant bank integrations in recent history. Whether the full projected synergies are realized will depend, in part, on the smooth execution of these final migration steps.