Podcast Summary: Bloomberg Talks

Episode: UBS CEO Sergio Ermotti Talks Swiss Banking Reforms, Asian Markets
Date: January 13, 2026
Host: Bloomberg
Guest: Sergio Ermotti, CEO of UBS Group
Event: 26th Annual GCC, Shanghai

Overview

This episode features a comprehensive interview with Sergio Ermotti, CEO of UBS Group, conducted at the Global Capital Conference (GCC) in Shanghai. Topics span UBS’s outlook and strategy in China and greater Asia, integration with Credit Suisse, Swiss banking reforms, deal flows, IPO activity, and perspectives on Japan and the United States. Ermotti discusses growth priorities, regulatory challenges, and the evolving landscape for global banking.

Key Discussion Points

1. Momentum and Outlook in China and Asia

[00:33–03:37]

• Renewed Interest in China:

  • UBS sees “huge interest coming back on the Chinese markets” with growing overseas participation, especially in innovation sectors such as technology and biotech.
  • Markets have rebounded; “the CSI 300, up about 17% last year.” (Host, [02:06])
  • Both inbound (foreign) capital and outbound Chinese investment are rising.
  • “The secular trend supporting China ... is here to stay and investors are realizing that.” (Sergio Ermotti, [01:26])

• Deal Flow and Investor Dynamics:

  • Notable drop in international investors’ underweight position to China, halving in one year.
  • Hong Kong set records with IPO volume, projected to remain elevated.
  • “M&A in Japan is up threefold.” (Sergio Ermotti, [02:36])
  • Active both on inbound and outbound Asian deals.

2. UBS’s Onshore Priorities in China

[03:37–05:58]

• Business Expansion:

  • Priority is reinforcing presence through asset and wealth management; more than $1 trillion managed in the region.
  • Plans to launch a Panda Bond in China; details forthcoming.
    • Quote: “Decision has been taken to a Panda Bond.” (Sergio Ermotti, [04:51])
  • Ongoing capital increases in local entities.

• Talent and Hiring:

  • Focused on hiring young talent from local universities; aims to hire “around 100 people this year in China” ([05:08])
  • Emphasis on both seasoned professionals and the next generation.

3. Credit Suisse Integration and Cost Management

[05:46–06:41], [12:36–14:07]

• Status of Integration:

  • Asian and investment bank integration complete as of 2024.
  • “In Asia ... the integration is over, is done.” (Sergio Ermotti, [05:58])
  • In Switzerland, migration of clients to UBS platform will wrap up by Q1 2026.
  • Following integration, focus shifts to shutting down redundant IT/data centers and some staff reductions (below 3,000 redundancies by early 2027).

• Growth Post-Integration:

  • Integration intended to set the stage for renewed growth and competitiveness.

4. Regional Business Performance and Priorities

[06:41–09:44]

• Asia’s Role:

  • Asia now accounts for 25–30% of UBS profits over the last five years; over $1 trillion managed out of $7 trillion globally.
  • China and Asia regarded as the “biggest engine of growth.”
  • IPO calendar and new economy companies are critical for net new money and assets.

• Bubble Concerns in Chinese Markets:

  • When asked about a possible bubble, Ermotti emphasizes the importance of diversification over sector concentration.
    • Quote: “Diversification—no concentration of risk around the sector. The technology is here to stay ... But you should not really mix the two issues.” ([08:14])
  • Sector innovation (AI, biotech) will likely bring broader benefits to other industries.

5. Facilitating Government Policy Priorities

[09:21–10:38]

• UBS supports both local and foreign clients in identifying standout companies in innovation-driven sectors.
• “It's quite impressive how the Chinese companies are able not only to be a fast follower but in some cases setting new standards for incumbents in the US.” (Sergio Ermotti, [09:44])

6. Japan: Renewed Optimism and Expansion

[10:38–11:58]

• Japan’s market benefits from pro-growth policies and rising optimism.
• Japan is third-largest globally for wealth management; rates are rising, creating a “new paradigm.”
• UBS is growing partnerships, especially in wealth management with Sumitomo Mitsui Trust.
• Hiring and growth planned across all core businesses (wealth management, investment banking, asset management).

7. Swiss Banking Reforms & Regulatory Developments

[14:07–16:31]

• UBS supports learning from Credit Suisse’s collapse but sees current Swiss proposals as potentially “going too far.”
  • Quote: “We believe that the current proposals are not really reflecting what happened at Credit Suisse and are going too far.” ([14:53])
• Seeks “a competitive regulatory framework” and emphasizes ongoing dialogue with Swiss authorities.
• Regulatory changes are a “political process, not a negotiation.”
  • Quote: “There is a compromise is usually between two people ... we are not in a negotiation, it's a political process.” ([15:33])
• UBS remains committed to Swiss identity: “We are a Swiss bank. We are very proud to be a Swiss bank… good for Switzerland.” ([15:33])

8. U.S. Strategy and Global Competitiveness

[17:00–17:55]

• The U.S., Asia/China, and Switzerland viewed as UBS’s three growth engines.
• “It's very important for us to continue to be competitive and present in the US like we want to continue to be strong in Asia and in our home country, Switzerland.” (Sergio Ermotti, [17:20])
• Regular dialogue with global regulators and stakeholders; no concrete moves regarding U.S. domicile discussed.

Notable Quotes & Memorable Moments

• On Asian Growth:
  “Asia has been growing… is probably the biggest engine of growth in nominal terms, accounting for around a quarter to 30% ... of our profits.” ([06:46])

• On Diversification Amid Tech Boom:
  “Our advice is very clear: diversification, no concentration of risk around the sector. The technology is here to stay.” ([08:14])

• On Swiss Regulatory Debate:
  "We believe that the current proposals are not really reflecting what happened at Credit Suisse and are going too far." ([14:53]) "We are a Swiss bank. We are very proud to be a Swiss bank. ... We believe this is good for Switzerland ..." ([15:33])

• On Japan’s Changing Market:
  “After 30 years ... I felt for the first time a renewed sense of optimism across the board ... corporates, institutional investor, governments...” ([10:55])

• On Integration with Credit Suisse:
  “By around … the end of this first quarter we're going to migrate the balance of around 15% of the clients in Switzerland into the UBS platform. ... all clients globally will be on a UBS system.” ([13:03])

Timestamps for Key Segments

• Chinese Market Comeback & Outlook: [00:33–03:37]
• Deal Flow and International Capital Trends: [02:06–03:37]
• UBS Onshore China Priorities & Hiring: [03:37–05:46]
• Credit Suisse Integration (Asia & Global): [05:46–06:41]; [12:36–14:07]
• Regional Comparison & IPO Surge: [06:41–09:21]
• Views on Tech Bubble & Diversification: [07:47–08:14]
• Japanese Market Strategy: [10:38–11:58]
• Swiss Banking Reform Discussion: [14:07–16:31]
• U.S. Growth Opportunities: [17:00–17:55]

Conclusion

Ermotti presents UBS as confidently navigating the post-Credit Suisse landscape, betting on Asia’s expanding markets, reaffirming commitments in China and Japan, and advocating for balanced regulatory reforms at home in Switzerland. His pragmatic tone—measured optimism in Asia, emphasis on diversification, and nuanced regulatory commentary—provides insights into both UBS strategy and broader industry shifts.