At the World Economic Forum in Davos on January 21, 2025, UBS CEO Sergio Ermotti emphasized that the bank is not pursuing new acquisitions, calling further deals “premature” as the integration of Credit Suisse remains the top priority .
Ermotti reminded stakeholders that UBS is deep into consolidating Credit Suisse’s operations and aligning systems and teams across the combined organization . With major efforts already underway—including shutting down legacy IT systems and migrating client data—he stressed that the focus remains on internal cohesion before resuming external expansion .
Addressing the expectations under the new U.S. administration, Ermotti said significant deregulation of the banking sector is unlikely. He expects only incremental “rationalization of existing regulation” for large banks, rather than sweeping reforms . This cautious regulatory outlook, combined with persistent geopolitical risks—especially rising tariff tensions between the U.S. and China—underscores the advantages of consolidation over bold deal-making .
Ermotti’s comments reflect UBS’s strategic choice to solidify operations post-merger rather than engage in rapid external growth. He highlighted that internal stability and creating long-term shareholder value are non-negotiable targets before considering further M&A activity .
Recent data supports this cautious stance: UBS has already realized US $7.5 billion in cost savings from the Credit Suisse acquisition and aims to extract an additional US $5.5 billion through ongoing headcount reductions and technology integration . The bank is also proceeding with a US $3 billion share buyback program in 2025, signaling strong financial discipline as it reinforces its post-merger structure .
In summary, Ermotti’s message at Davos was consistent: UBS is on a path of integration and internal optimization. With regulatory scope limited and global economic uncertainty still high, the bank is forgoing new acquisitions to ensure a smooth and value-creating merger execution. Only once this foundation is firmly in place will UBS consider external growth opportunities.
