ZURICH – UBS Group (NYSE: UBS) will continue to provide around 350 billion Swiss francs ($414 billion) of loans to its home market, a senior executive at the Swiss bank said on Wednesday, countering speculation it could trim domestic loan volumes.
UBS’ Switzerland country head Sabine Keller-Busse said the bank’s commitment to its domestic market was unwavering, even as she noted “there’s something uncontrollable out there in the public, which is always questioning what we are doing”.
“Underpinning this commitment, we aim to maintain our loan book in Switzerland at around 350 billion Swiss francs,” Keller-Busse told a conference in northern Switzerland.
In addition to corporate loans, the figure also includes loans to private individuals and mortgages, the bank said.
UBS’ operations have been under close scrutiny since it acquired Credit Suisse last year following a series of financial setbacks that led to the collapse of its longtime rival.
UBS’ leadership has said that Credit Suisse ran an unsustainable business model, and had offered credit on terms that were too low, and therefore needed to be re-priced.
That has led to some media reports speculating that UBS (NYSE: UBS) could slim down its loan book in Switzerland, which is a key market for the bank.
Keller-Busse said around 30% of the bank’s capital, more than in any other region, is invested in Switzerland, which also accounts for around 30% of its total revenues.
($1 = 0.8464 Swiss francs)
(Source: ReutersReuters)
