UBS axes nearly 70% of Credit Suisse researcher jobs in Hong Kong: Sources

HONG KONG – UBS has cut around 70 per cent of the Hong Kong-based staff headcount at Credit Suisse’s securities research unit, two sources with direct knowledge of the matter said on Thursday, as the two Swiss banking giants

move ahead with the integration of their operations.

UBS’ takeover of Credit Suisse, the biggest bank merger since the 2008 global financial crisis, was hastily arranged in March by the Swiss authorities to avert Credit Suisse’s collapse.

As part of the integration process, UBS decided to absorb Credit Suisse’s Securities Research service in September, wrapping the business into its own research operations, Reuters reported on Sept 5.

More than 15 equity researchers were notified earlier this week about the layoffs in Hong Kong, the sources said, adding fewer than 10 researchers focusing on Hong Kong and China equities will join the UBS team.

UBS declined to comment. Credit Suisse did not respond to a Reuters request for comments.

As a result of the staff layoffs, Credit Suisse on Monday terminated the Asia-Pacific equities strategy coverage, according to a client note sent by the bank and reviewed by Reuters.

Two former Credit Suisse managing directors – Mr Charles Zhou, who headed China financials, and Mr Kenneth Fong, who headed China Internet and Asia gaming research – are among those joining UBS. Both will bring some junior researchers from Credit Suisse, the sources added.

UBS’ takeover of Credit Suisse

marks the first-ever merger of two global, systematically important banks after the latter suffered years of scandals and losses before its rescue in March.

UBS chief executive Sergio Ermotti said on Tuesday that the momentum was pretty positive at the Swiss bank, which manages US$5.5 trillion (S$7.52 trillion) in assets since merging with former rival Credit Suisse earlier in 2023. REUTERS