UBS Needs to Be in US to Be Successful, CEO Ermotti Tells CNBC

UBS Group AG has to have a presence in the US to prosper, Chief Executive Officer Sergio Ermotti said, effectively signaling he’s unwilling to consider cutbacks to meet the capital requirements that Switzerland is set to impose.

“We need to be in the US to be successful,” Ermotti said in a CNBC interview on Tuesday. “And so we are further investing in capabilities to stay competitive.”

UBS is seeking to dissuade Switzerland from imposing hefty new capital requirements on its largest bank, but a recent vote in the parliament’s upper house has decreased its chances of swaying lawmakers. One of the lender’s shareholders, Artisan Partners, recently urged it to leave Switzerland as a radical way to get out from the country’s banking regulation.

Read More: UBS Faces Swiss Exit or Stay-and-Pay as Capital Defeat Nears

One other option for UBS to deal with the future regulation would be to cut back its international footprint. That would help because the new rules are designed to force the bank to hold more capital at home for its foreign subsidiaries.

However, the Swiss bank has made international growth a priority and it recently obtained a broader US banking license to underpin the effort. Ermotti has even floated the idea of acquisitions in the country.

“We believe being based in Switzerland is good for the Swiss economy, clients and our shareholders,” Ermotti said in the interview. “We will need to consider what needs to be done.”