ZURICH, Sept 11 (Askume) – UBS Group AG (UBSGS) will continue to lend about 350 billion Swiss francs ($414 billion) in the domestic market, a senior official at the Swiss bank said on Wednesday, fuelling speculation.
Sabine Keller-Busse, UBS’s country head for Switzerland, said the bank’s commitment to the domestic market was unwavering, but added that “there is something unruly among the public, always questioning our actions.”
“Taking into account this commitment, our goal is to maintain total debt in Switzerland at around 350 billion Swiss francs,” Keller-Booth told a conference in northern Switzerland.
Apart from business loans, the figure also includes personal loans and mortgages, the bank said.
UBS’s operations have come under scrutiny since it acquired Credit Suisse last year, following the collapse of its long-time rival amid a series of financial setbacks.
UBS leaders said Credit Suisse’s business model was unsustainable and that the loans it made were on too short terms and needed to be repriced.
This has led to speculation in some media reports that UBS could reduce its loan book in Switzerland, the bank’s main market.
Keller-Booth said about 30% of the bank’s capital is invested in Switzerland, more than anywhere else, and Switzerland also contributes about 30% of its total revenue.
(1 USD = 0.8464 Swiss Francs)
