Podcast Summary: UBS CEO Sergio Ermotti Talks Market Volatility

Podcast: Bloomberg Talks
Host: John Ferro (Bloomberg Surveillance Anchor)
Guest: Sergio Ermotti, CEO of UBS
Location: Davos, Switzerland, World Economic Forum
Date: January 20, 2026

Overview

In this episode, Bloomberg Surveillance's John Ferro sits down with UBS CEO Sergio Ermotti at the World Economic Forum in Davos. Their lively conversation focuses on the current landscape of market volatility, global asset diversification, the importance of the U.S. for investment, and UBS's integration of Credit Suisse. The discussion also touches on Ermotti's succession planning and reflections on his leadership legacy as he nears the completion of the Credit Suisse integration.

Key Discussion Points & Insights

1. Global Market Volatility and Diversification

• Sergio Ermotti addresses recent turbulence in global financial markets and emphasizes the ongoing uncertainty.
  • “It’s probably the accumulation of issues that are now out there and not resolved that is becoming a little bit troubling in my point of view.” (01:18)
  • Ermotti predicts that volatility and unpredictability will persist, advocating for diversified investment strategies:

    “I think that staying diversified in financial markets nowadays is pretty important.” (01:33)

2. Debate: Diversification Away from U.S. Assets

• John Ferro asks whether “diversification” is a euphemism for selling U.S. assets, referencing recent trends and commentary from other investors.
• Ermotti dismisses the idea of moving away from U.S. assets as impractical and risky:
  • “Diversifying away from America is impossible… diversifying away from the US and also from the Dollar is a quite dangerous bet. You know, things can change rapidly and the US is the strongest economy in the world.” (02:09)
  • He further expresses confidence in U.S. innovation and economic strength.

3. The U.S. as a Top Investment Destination

• The U.S. remains the leading magnet for capital, supported by a recent PwC CEO survey.
• Ermotti provides UBS’s perspective on why America is still so attractive:
  • “We see two big levers. First of all, wealth creation, GDP growth, innovations…Last year the U.S. created 25 million of new millionaires. So…1,000 millionaires a day.” (03:12)
  • He notes UBS’s significant growth in Asia but reaffirms the U.S. as critical for wealth management.

4. UBS Growth Strategy: Organic vs. Acquisition

• Ermotti favors organic growth but highlights recent regulatory progress and internal improvements:
  • “We have enough to do organically…we just got a national charter application being approved by the FCC. We are expanding our interaction between the investment bank [and] wealth management people.” (04:08)

5. Swiss & European Banking Regulation: Capital Requirements

• Ferro raises the looming issue of increased capital requirements for Swiss banks.
• Ermotti is realistic about the slow progress due to political processes:
  • “Not quickly. I think it’s a political process…We’re going to find out the direction of travel in the middle of the second quarter.” (04:51)
• Despite regulatory distractions, Ermotti touts success in integrating Credit Suisse.

6. Credit Suisse Integration and Cost-Cutting

• The Credit Suisse integration is nearly complete; remaining priorities include cost reduction and operational streamlining:
  • “We still need to take out 3 billion of cost and finalize the restructuring. And then…we are prepared for growth.” (05:32)
  • Significant savings will come from IT and data center rationalization, with further workforce reductions possible.

7. Succession Planning

• Ferro quizzes Ermotti on succession—whether the next CEO will come from inside or outside the bank.
• Ermotti emphasizes steady internal leadership but remains open to external candidates:
  • “My job is to prepare and to present…as many candidates possible for internally. The role of the board is to also evaluate external candidates…an evolution is what we need, probably not a revolution.” (06:45)
  • On the timeline: “Succession is something that we manage every year.” (07:22)

8. Reflecting on Leadership and Legacy

• Ferro asks Ermotti to reflect on his legacy at UBS, particularly in the context of the dramatic Credit Suisse integration.
• Ermotti expresses pride in stabilizing the Swiss banking system in a moment of crisis:
  • “In a tragic moment for Switzerland and for the banking industry, I was very proud in 2023…that UBS was asked to step in and help stabilize Credit Suisse. Being part of the solution, that was for me…almost reaching what I always thought I wanted to show with our transformations.” (08:45)
  • He hopes to leave UBS “stronger than before” and set for “even better” things after his departure.

Notable Quotes & Memorable Moments

• On Market Volatility:

  “Staying diversified in financial markets nowadays is pretty important.”
  — Sergio Ermotti (01:33)

• On Avoiding U.S. Exposure:

  “Diversifying away from the US and also from the Dollar is a quite dangerous bet.”
  — Sergio Ermotti (02:09)

• American Wealth Creation:

  “Last year the U.S. created 25 million of new millionaires.”
  — Sergio Ermotti (03:12)

• On Completing the Credit Suisse Integration:

  “We still need to take out 3 billion of cost and finalize the restructuring.”
  — Sergio Ermotti (05:32)

• On Succession:

  “Succession is something that we manage every year.”
  — Sergio Ermotti (07:22)

• On Legacy:

  “Being part of the solution [to stabilize Credit Suisse], that was for me…almost reaching what I always thought I wanted to show with our transformations.”
  — Sergio Ermotti (08:45)

Timestamps of Key Segments

• Market Volatility & Diversification: 01:18 – 01:44
• Diversification Away from U.S.: 02:09 – 02:41
• Why America for Investment: 03:12 – 04:04
• UBS Growth Strategy: 04:08 – 04:36
• Swiss Banking Regulation: 04:51 – 05:25
• Credit Suisse Integration: 05:32 – 06:04
• Workforce and Cost-Cutting: 06:09 – 06:32
• Succession Planning: 06:45 – 07:46
• Reflections on Legacy: 08:45 – 09:25

Conclusion

Sergio Ermotti presents a confident, pragmatic vision for UBS: resilience amid market volatility, cautious optimism about the U.S. economy, and disciplined management of major transformations like the Credit Suisse integration. His legacy, as he describes it, hinges not only on navigating crisis but ensuring the bank emerges stronger and prepared for future leadership transitions.