Sergio Ermotti, Chief Executive Officer of UBS, publicly defended the bank's newly announced $3 billion share buyback while sharply criticizing a Swiss government proposal that would require the bank to build an additional $20–22 billion of Common Equity Tier 1 (CET1) capital.
In an interview with Schweiz Heute, Ermotti argued the buyback is a fair way for shareholders to benefit from the bank's business performance and said it is more flexible than raising dividends, which are harder to cut if capital is later needed elsewhere.
At the same time, he described the government's plan as "extreme," saying that the extra capital would sit idle on the balance sheet and would not serve anyone's interests.
Market speculation had suggested that tighter domestic rules might prompt UBS to consider moving its headquarters to the United States in search of more favorable conditions. Ermotti categorically dismissed those suggestions, stating the management never proposed or contemplated relocating the firm across the Atlantic.
Ermotti also said the integration of Credit Suisse — which UBS acquired after the 2023 rescue — is effectively complete. He said the bank has entered a new phase in which internal consolidation gives way to growth initiatives and technology investments, with particular emphasis on applying artificial intelligence.
There has been investor speculation that Ermotti might move into the role of chairman after the merger work concluded. He denied any plans to step down or change roles in the foreseeable future. The current leadership structure remains in place: Sergio Ermotti continues as Chief Executive Officer while Colm Kelleher serves as chairman.
The remarks were reported by Reuters. Ermotti's statements focused on preserving the bank's strategic independence, balancing shareholder returns and capital needs, and redirecting efforts toward growth and technology following the Credit Suisse integration.
