ZURICH (Reuters) – Switzerland’s largest financial institution UBS on Thursday appointed former Credit Suisse supervisor Iqbal Khan to co-lead its flagship wealth administration enterprise, as part of a broader shake-up of its government board.
FILE PHOTO: Iqbal Khan, CEO International Wealth Management of Swiss financial institution Credit Suisse attends the corporate’s annual shareholder assembly in Zurich, Switzerland April 26, 2019. REUTERS/Arnd Wiegmann/File Photo
The appointment of Khan alongside two inner promotions mark a big revamp for the financial institution as it seeks recent expertise for its CEO succession planning efforts and drums up enthusiasm for its core enterprise in an more and more difficult panorama.
Khan, a former head of Credit Suisse International Wealth Management and a rising star thought-about a CEO candidate sooner or later, will substitute Martin Blessing as UBS wealth administration co-head alongside U.S. counterpart Tom Naratil.
Suni Harford, a Citigroup veteran who joined UBS in 2017, was promoted from her present position as head of funding on the asset administration enterprise to main your complete division. She replaces Uelrich Koerner.
“I’m looking forward to having Suni and Iqbal join the Group Executive Board,” Chief Executive Sergio Ermotti stated in a press release. “They are great additions to the team and will help us drive sustainable growth and profitability for UBS.”
In addition, Chief Operating Officer Sabine Keller-Busse will tackle the extra position of president of the Europe, Middle East and Africa area from Koerner.
After benefiting from a shift to the historically regular wealth administration enterprise years forward of rival Credit Suisse, UBS has been hit by a slew of troubles in recent times.
They vary from money hoarding by rich shoppers to a multi-billion euro authorized struggle in France, prompting questions on whether or not it’d have to refresh its technique as banks come beneath strain from geopolitical turmoil and low rates of interest.
With Ermotti within the CEO position since 2011 and Chairman Axel Weber main the non-executive board since 2012, hypothesis over succession planning has been on the rise.
The appointment of Khan, 43, ought to take strain off administration to current a long-term prospect. Keller-Busse and Naratil are additionally seen as candidates for the position.
Khan give up Credit Suisse in July “to pursue other opportunities”, with sources saying he was mulling roles at UBS, Julius Baer and a U.S. financial institution, with the long-term objective of procuring a prime job as CEO.
Under Khan, Credit Suisse’s newly created International Wealth Management unit boosted profitability and revenues as Switzerland’s second-biggest financial institution underwent a serious overhaul, whittling down its funding financial institution and refashioning itself as a financial institution for rich entrepreneurs.
“We welcome the appointments of Iqbal Khan and Suni Harford (effective 1 October 2019) and believe the market will take the rejuvenation of UBS’s Group Executive Board well,” Vontobel analyst Andreas Venditti wrote in a notice.
“Iqbal Khan clearly has a strong track record, boosting Credit Suisse International Wealth Management’s adjusted pre-tax profit by almost 80% in 3 years.”
UBS inventory rose 1.four% by 0840 GMT whereas the European financial institution sector index gained zero.9%.
Blessing, a former Commerzbank head who joined UBS in 2016, will stay with the financial institution via December, whereas asset administration head Koerner will turn into an adviser to Ermotti via no less than March.
Additional reporting by Angelika Gruber, modifying by Deepa Babington