Swiss lawmakers have urged UBS to scale back its lobbying over proposed capital reforms and lower the public profile of chief executive Sergio Ermotti, as the bank’s dispute with the government intensifies ahead of changes that could require up to $26 billion in additional capital.

According to the Financial Times, members of parliament have privately warned Switzerland’s largest lender that its campaign risks hardening political opposition. “A large part of parliament actually agrees with the bank [on a key point of contention] but we have told them that their lobbying and particularly statements by Ermotti are not helpful right now,” one lawmaker told the FT. Another parliamentarian said they had advised the bank to “reconsider its lobbying campaign”.

The dispute centres on plans that could force UBS to fully capitalise its foreign subsidiaries following its state-backed takeover of Credit Suisse in 2023. The reforms form part of a broader effort by the Swiss government to prevent a repeat of the crisis that led to Credit Suisse’s collapse and to shield taxpayers from future bailouts.

Reuters reported that one person familiar with UBS’s lobbying efforts said reducing Ermotti’s public profile was not something the bank would consider. In a statement to Reuters, a UBS spokesperson said Ermotti would “remain Group CEO until at least early 2027” and that “it is premature to speculate about the timing of Sergio stepping down”.

Separately, Swiss newspaper Neue Zürcher Zeitung reported that the board is considering extending Ermotti’s tenure beyond 2027 as uncertainty over the bank’s future capital requirements persists. Ermotti, 65, returned to lead UBS in 2023 to oversee the integration of Credit Suisse and had been expected to step down once the process was largely complete.

UBS has lined up potential internal successors, including wealth management co-heads Iqbal Khan and Robert Karofsky, asset management chief Aleksandar Ivanovic and chief operating officer Bea Martin. The bank said that when the time comes to appoint a successor, the board would “draw on a strong bench of internal candidates” while evaluating external options in line with its fiduciary duties.

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