BASEL, April 15 - UBS Chairman Colm Kelleher warned on Wednesday that the bank may soon face a need to make significant business decisions if the government's proposed capital rules are adopted as currently drafted. The comments, made at UBS's annual general meeting in Basel, amplified an already tense debate about the changes and followed mounting pressure from markets and shareholders.
Kelleher described the draft banking rules as "a serious risk to UBS’s business model while offering little meaningful improvement to financial stability." He reiterated that UBS remains an integral institution for Switzerland, but he rejected the option of shrinking the bank in size and emphasized the group's continued expansion ambitions in Asia and the United States.
"We want to remain headquartered in Switzerland," Kelleher said. He added: "In the meanwhile, it is our duty to evaluate appropriate measures to address, if confirmed, the negative effects of these extreme proposals."
The comments come as Switzerland moves to introduce new capital requirements following the failure of Credit Suisse in 2023, which was acquired by UBS in a state-engineered emergency takeover. The governing Federal Council is scheduled to clarify its capital proposals later this month.
Kelleher also tied the scope of future share buybacks to the eventual regulatory framework, saying that the extent of buybacks will depend on Switzerland's final regime. He used the AGM as an opportunity to thank Chief Executive Officer Sergio Ermotti for overseeing the integration of Credit Suisse, which Kelleher said is "now in its last mile."
"Sergio will see the integration through to completion and then focus on driving growth and sustainably higher returns," Kelleher said. "He will also lead UBS through this period of regulatory uncertainty."
Media reporting this week said Ermotti could remain in his post well into the second half of 2027, amid the absence of an obvious internal successor.
This account reflects remarks and facts presented at the AGM and reporting about leadership timelines. It does not introduce additional analysis or conjecture beyond the statements and developments cited above.