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Sergio Ermotti (63) returns as chairman of the board of directors of UBS in 2023 due to the turbulent takeover of Credit Suisse. The return was financially valuable for the CEO: Ermotti has been CEO of the big bank again since April and received 14.1 million francs in the nine months to the end of the year, UBS’s annual report published on Thursday showed.
Ermotti’s predecessor, Ralph Hamers (58), earned a total of 12.6 million francs in 2022. In addition to his fixed salary of 2.9 million francs, he also received a bonus of 9.7 million francs. For comparison: If Ermotti’s salary was calculated over one year, Ermotti would even earn 18.8 million francs.
The CS deal was also worth it for other members of the management team: the entire management team of Switzerland’s largest bank was paid a total of 140.3 million francs in 2023, compared to 106.9 million francs in the previous year.
Colm Kelleher (66), Chairman of the Board of Directors of UBS since April 2022, will receive 4.7 million francs for his second year until the next general meeting on April 24. There were 4.8 million people in the first year. The entire board earned 15.2 million in 2023, including fringe fees; this was significantly more than 12.6 million in 2022.
Profit revised downwards
When it comes to profits, the big bank needs a downward correction compared to the unaudited business figures released on February 6: The result is a net profit of US$27.8 billion. A surplus of 29 billion was reported in February. UBS justifies the lower profit with the lower value of goodwill from the acquisition of rival Credit Suisse. This was because the purchase price was significantly below the book value of the second largest Swiss bank at the time. Negative goodwill is currently reported to be $27.7 billion, down 1.2 billion.
According to UBS, estimates made at the time of acquisition were “improved” in accordance with accounting standards. Diluted earnings per share are currently reported at $8.45.
This also has an impact on UBS’s common equity Tier 1 capital ratio at end-2023. The capital ratio, called the CET1 capital ratio, is now 14.4 percent, compared to the 14.5 percent reported at the beginning of February.
*Update to follow
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
