Swiss National Bank (SNB) president Thomas Jordan said that the bank is not considering options to spin-off Credit Suisse Group’s local unit even after its acquisition by UBS Group.
Unlike its other wings that got entangled in years of scandals, Credit Suisse’s Swiss unit has been earning profits for a long time, reported Bloomberg.
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Among the bank’s four main arms, the unit was the only division to earn money last year.
The unit is estimated to be valued at approximately CHF10bn ($10.9bn), much higher than the bank’s latest overall market value.
Jordan told reporters in Zurich: “A spinoff is not on the table right now.”
Earlier this week, Ethos Foundation, one of the shareholders of Credit Suisse, requested the Swiss authorities and UBS to see if it’s possible to separate and list Credit Suisse’s Swiss unit after the takeover due to uncontrolled market concentration, competition and layoffs.
According to Jordan, shuttering Credit Suisse could result in a further deterioration in the banking sector.
Jordan said: “It was clear, given the environment, given the crisis environment, given the banking crisis, US, and the fragility everywhere, that resolution would not work.”
He further added that both UBS and Credit Suisse have shown their commitments to the deal brokered by the government.
He said: “UBS made a full commitment to the takeover of Credit Suisse.”
Jordan also said it’s “extremely important that both parties” to ensure a smooth completion of the deal.
Separately, Bloomberg reported that UBS Group has engaged its wealth chief Iqbal Khan to contain the exodus of Credit Suisse’s private bankers and clients to its rivals.
