Ermotti Says UBS Won’t Shrink to Meet Swiss Capital Rules (1)

UBS Group AG Chief Executive Officer Sergio Ermotti said that he won’t make the bank smaller to mitigate the potential impact of future Swiss capital requirements.

“Having a global diversified business is a strength for us and for Switzerland,” Ermotti said in a Bloomberg TV on Wednesday. “Shrinking is not an option.”

Switzerland last month unveiled proposals to reform its bank capital rules in an effort to make the industry more resilient following the collapse of Credit Suisse in 2023. The government has estimated this could add as much as $26 billion to UBS’s existing capital demands, triggering an effort ...