On March 19, UBS bought Credit Suisse for 3 billion euros. The operation was closed after a weekend of talks to overcome the second bank crisis in the country. The week before, Credit Suisse suffered a financial crash that ended the bank’s 170-year history. Both companies have businesses in Spain, but UBS sold its business to Singular Bank in 2021 and adopted a non-compete clause for the next three years. This situation makes the Swiss company question how to approach the merger with Credit Suisse in Spain.
Sources close to the entity explain that all “quite stagnant” and they even indicate that they are considering how to approach this merger and approval with Credit Suisse because of this non-compete clause. Probably, as sources indicate, there will be nothing to work on and agree on until the summer. For now, the only thing UBS has given to its workers in Spain is peace of mind.
UBS will be forced to find a solution where whatever solution it chooses will have something to lose. Options being considered include shutting down the business, selling it to a third party, or paying a fine to keep large assets. Several private banking institutions have already shown interest in Credit Suisse’s business. As published Extension, Safra, Andbank and Creand They have already asked about business. UBS has not priced the options at this time. The cessation of all operations is also due to the fact that the Swiss company requires approvals from various supervisory authorities to continue integrating Credit Suisse.
Singular Bank emphasizes that UBS cannot compete with them because of the non-competition agreement, which slows down the process. Javier Marin, President of Singular Bank, noted in an interview in Extension What “No legal vacuum”. Some sources indicate that the fine for non-compliance with this non-compete agreement could be 200 million euros, although others point to a higher figure.
Credit Suisse employs around 400 people in the country, manages over €10,000 million in assets, has around €700 million in deposits and has around 3,000 clients. He is above all a national leader in the management of large fortunes. While no movement is visible, other entities seek to take over the business with large fortunes. However, since all this became known, Spanish investors are moving away from the enterprise.
In the first four months of the year, Credit Suisse recorded refunds of €301.5 million, according to employers’ association Inverco. Meanwhile, the manager of the organization tries to remain calm and continue his day-to-day activities until the bank takeover is completed. The manager notes that they are not distracted by the situation and continue to manage every day. They want it to be clear that they continue to manage as a unit, even if it’s a difficult situation.
This recovery means that his assets are below €1,000 million for the first time since 2013.total assets of Credit Suisse Gestión in March were 920 million euros. This fall, the manager of a Swiss company in Spain went from managing 0.71% of all market assets to 0.28% in just three months.
The Swiss bank in Spain has three lines of business. On the one hand, there is Credit Suisse Bank Europe, the investment banking institution that the Swiss firm used after Brexit to serve European clients and access markets on the Old Continent.
The wealth management business is centered in a subsidiary of Credit Suisse AG, where they serve Spanish clients. Similarly, the manager of Credit Suisse Gestión runs the business.
In terms of income in our country, Net fee and commission income of Credit Suisse was about 17 million euros. Of these, 6.6 million are funds, about 6.8 million are sikav and almost 2.9 million are trust management. The rest is distributed to other cars.
Source: El Independiente