UBS has reappointed former chief executive officer Sergio Ermotti in a surprise move to oversee the takeover of rival Credit Suisse.

Ermotti, who currently serves as chair of Swiss Re Group, previously served as the chief exec of UBS from 2011-20. He will take over as chief executive and president at the bank on April 5, following the bank’s annual general meeting.

The executive is known as an adept problem solver. He will be tasked with reducing the size of Credit Suisse’s investment bank after the government-assisted shotgun merger, and reassuring investors of UBS’s stability as Switzerland’s last remaining global bank.

Ermotti said: “The task at hand is an urgent and challenging one. In order to do it in a sustainable and successful way, and in the interest of all stakeholders involved, we need to thoughtfully and systematically assess all options. I am conscious of the uncertainty many feel and I promise that, together with my colleagues, our full attention will be on delivering the best possible outcome for our clients, our employees, our shareholders and the Swiss government.”

The bank said that current chief exec Ralph Hamers has agreed to step down from his role. He will remain at UBS and work alongside Ermotti as an advisor during a transition period.

UBS praised the outgoing Hamers, who assumed the role in November 2020. It said that the executive “has encouraged a strong focus on clients and on shaping and executing our strategy, while ensuring tight cost management and strong risk discipline,” and praised him as “instrumental” in delivering the acquisition of Credit Suisse.

Hamers said: “Integrating Credit Suisse is UBS’s single most important task and I am confident that Sergio will successfully guide the bank through this next phase.

“I am of course sorry to leave UBS, but circumstances have changed in ways that none of us expected. I am stepping aside in the interests of the new combined entity and its stakeholders, including Switzerland and its financial sector – it has been a pleasure and privilege to lead this great bank to where it is today."

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