Key business decisions may soon become unavoidable, UBS Chairman Colm Kelleher said on Wednesday.
His remarks come amid an intensifying debate over proposed Swiss capital requirements that have increased pressure from markets and shareholders.
Speaking at the bank’s annual general meeting in Basel, Kelleher warned that new banking rules proposed by the government pose a serious risk to UBS’s business model.
He said the proposals would offer little meaningful improvement to financial stability.
Concerns over new Swiss banking rules
The proposed regulations follow the collapse of Credit Suisse in 2023, which UBS acquired in a state-backed emergency deal.
Swiss government is now seeking to strengthen capital requirements for major banks.
The Federal Council is expected to provide further clarity on these proposals later this month.
Kelleher stressed that while UBS remains deeply rooted in Switzerland, the bank is not considering reducing its size.
Instead, he reiterated its commitment to growth in key international markets.
“We want to remain headquartered in Switzerland,” Kelleher said, as cited in Reuters.
He also indicated that UBS is actively assessing its options in response to the proposed rules.
“In the meanwhile, it is our duty to evaluate appropriate measures to address, if confirmed, the negative effects of these extreme proposals,” he added, according to a Reuters report.
Growth strategy remains intact
Despite regulatory concerns, UBS continues to focus on expansion in Asia and the United States.
Kelleher underlined that the bank’s long-term strategy remains unchanged, even as it navigates uncertainty around future rules.
He also highlighted the progress made in integrating Credit Suisse into UBS operations.
The acquisition, which followed the former lender’s collapse, is now nearing completion.
Kelleher praised CEO Sergio Ermotti for his role in steering the integration process.
UBS’s capital return plans remain closely linked to the evolving regulatory landscape.
Kelleher reiterated that the scale of future share buybacks will depend on the final outcome of Switzerland’s capital framework.
He also noted that Ermotti would continue to lead the bank through this period of uncertainty.
Uncertainty continues to weigh on outlook
The ongoing regulatory debate has added to investor concerns about UBS’s future direction.
While the bank remains committed to its global growth ambitions, the outcome of the Swiss government’s proposals could have significant implications for its strategy.
Kelleher’s comments signal that UBS is preparing for multiple scenarios, including potential adjustments to its operations if stricter capital rules are implemented.
Meanwhile, UBS provided an outlook on commodities, highlighting diverging trends across key metals.
The bank said it expects copper and aluminium prices to remain supported over the medium term due to persistent supply shortages.
Long-term demand is also expected to stay strong, driven by structural factors such as electrification.
UBS commodity analysts updated their projections on March 16, factoring in risks, interest rate policy, inflation, and underlying demand trends.
The bank maintained its bullish stance on gold despite recent underperformance.
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