UBS announced on Monday ( June 12 ) that it has completed the acquisition of Credit Suisse, with the combined entity operating as a consolidated banking group following a whirlwind deal orchestrated by Swiss financial regulators.

Shares of Credit Suisse will be delisted from the SIX Swiss Exchange and the New York Stock Exchange. As announced on March 19, Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares held.

Pending further integration, UBS will manage the two banks separately. Each institution will continue to have its own subsidiaries and branches, serve its clients and deal with counterparties. The board of directors and group executive board of UBS Group will hold overall responsibility for the consolidated group.

UBS also announced its board of director nominations for certain Credit Suisse entities. Subject to regulatory approval, the Credit Suisse board will consist of Lukas Gähwiler ( chair ), Jeremy Anderson ( vice-chair ), Christian Gellerstad ( vice-chair ), Michelle Bereaux, Mirko Bianchi ( until June 30 ), Clare Brady, Mark Hughes, Amanda Norton and Stefan Seiler.

Colm Kelleher, UBS Group chairman, comments: “I’m pleased that we’ve successfully closed this crucial transaction in less than three months, bringing together two global systemically important banks for the first time. We are now one Swiss global firm and, together, we are stronger. As we start to operate the consolidated banking group, we’ll continue to be guided by the best interests of all our stakeholders, including investors. Our top priority remains the same: to serve our clients with excellence.”

Sergio Ermotti, UBS Group chief executive, adds: “Today we welcome our new colleagues from Credit Suisse to UBS. Instead of competing, we’ll now unite as we embark on the next chapter of our joint journey. Together, we’ll present our clients an enhanced global offering, broader geographic reach and access to even greater expertise. We’ll create a bank that our clients, employees, investors and Switzerland can be proud of.”

On March 19, UBS agreed to acquire Credit Suisse for US$3.2 billion in stock and assume up to US$5.4 billion in losses in a deal engineered by Swiss authorities, which also provided guarantees for it to push through.

The Swiss Financial Market Supervisory Authority had said it was necessary  to take action as there was a risk that Credit Suisse could have become "illiquid, even if it remained solvent”. The Swiss central bank had stressed the need to “to secure financial stability and protect the Swiss economy in this exceptional situation".

Credit Suisse, already reeling from a series of financial scandals that began in early 2000s, was the biggest institution caught in the recent turmoil triggered by the collapse of US regional lenders Silicon Valley Bank and Signature Bank, which were then taken over by US federal authorities.

In its statement, UBS says it expects its CET1 capital ratio to be around 14% in the second quarter of 2023 and to remain around that level throughout 2023.  Credit Suisse’s operating losses and significant restructuring charges are expected to be offset by reductions in risk-weighted assets.

In the future, UBS will report consolidated financial results for the combined group under the International Financial Reporting Standards in US dollars. Second-quarter 2023 earnings will be reported on August 31.