(Bloomberg) — UBS Group AG appointed funding financial institution head Rob Karofsky to run its US enterprise and collectively oversee wealth with Iqbal Khan, in a administration shakeup that paves the way in which for a race to succeed Chief Government Officer Sergio Ermotti.
Khan, who beforehand had sole cost of the important thing wealth unit, will now additionally develop into president of the Asia Pacific area, the Zurich primarily based financial institution mentioned in an announcement Thursday. Khan will relocate to Asia later this summer season, the financial institution mentioned.
UBS is revamping its government board because it prepares to finish the authorized merger with Credit score Suisse and orient its technique to key markets within the Americas and Asia. Karofsky’s elevation helps implement Ermotti’s objective of increasing within the US, whereas Khan’s function permits him to concentrate on high-growth areas.
“With these modifications, Iqbal and Rob are the prime candidates for UBS’s CEO job, as soon as Sergio Ermotti retires, doubtless in just a few years,” mentioned Andreas Venditti, an analyst at Vontobel.
A part of the rationale for the modifications was to make sure that each Khan and Karofsky have extra rounded expertise working totally different areas of the financial institution to strengthen their providing in a possible CEO race, based on an individual acquainted with the matter.
The break up additionally provides them distinct areas wherein to show themselves — UBS’s problem in rising within the US is a tricky task, whereas the wealth enterprise is the important thing focus for the financial institution, the particular person mentioned, who requested to not be named discussing non-public particulars. That ensures each executives shall be extremely motivated, the particular person mentioned.
Bloomberg reported Karofsky’s promotion earlier. UBS shares had been little modified in Zurich buying and selling, and are up some 8% this yr.
Learn Extra: UBS Contemplating US CEO Function for Karofsky in Strategic Revamp
UBS stays targeted on finishing the combination of its former rival, and has pushed again the anticipated date for Ermotti to step down from his second time period main the financial institution to early 2027. The chief government is looking for to orient the financial institution for development past the merger, and has mentioned he’s working to construct out its presence within the US the place the financial institution has lengthy been sub-scale in comparison with Wall Road friends.
Learn Extra: UBS’s Ermotti Says His Time period as CEO May Stretch to 2027
Different names probably within the combine for the highest spot are Beatriz Martin, who runs the vital unit that’s winding down Credit score Suisse property, and Sabine Keller-Busse, who’s head of UBS’s Swiss enterprise.
UBS named Karofsky, 57, sole head of its funding financial institution unit in 2021, constructing on his background in buying and selling. He joined UBS in 2014, serving to drive a digital transformation of the markets unit. The funding financial institution helped underpin a firm-wide return to profitability final quarter, delivering a very sturdy efficiency within the Americas whereas finishing the combination of its Credit score Suisse counterpart.
Khan, 48, who helped run Credit score Suisse’s worldwide wealth enterprise for a number of years earlier than transferring to UBS in 2019, was subsequently made sole international wealth head. UBS is the world’s largest supervisor of wealth outdoors the US.
Former Credit score Suisse chief government officer Ulrich Koerner will retire and depart the mixed financial institution later this yr, based on the assertion.
In different appointments, George Athanasopoulos and Marco Valla will develop into co-presidents of the funding financial institution and be part of the chief board. Damian Vogel will succeed Christian Bluhm as group chief danger officer. Edmund Koh, the present president of Asia-Pacific, will develop into regional chair.
Naureen Hassan, who beforehand served as head of the Americas, will retire from the financial institution.
