11:10 AM EDT, 05/13/2024 (MT Newswires) -- UBS (UBS) Chief Executive Sergio Ermotti said the company is trying hard to avoid delays in the integration of its technology and data systems with those of Credit Suisse as a delay would decrease expected synergies, Reuters reported Monday.

UBS is expecting $13 billion in cost savings, mostly from workforce reduction and integration of information technology systems, according to the report.

"For us, the real risk is to have to delay the realizations of synergies," Ermotti said in an interview with Reuters. "So in that sense, of course, we need to plan and to be credible in what we do. I'm confident that we are moving in the right direction, but we are not complacent."

UBS started migrating Credit Suisse customers to UBS systems this year and has set a "maximum" achievable goal of decommissioning 30% of Credit Suisse apps in 2024, Ermotti told Reuters.

UBS will try to decrease staff via early retirement, attrition and outsourcing, but job cuts are also "inevitable," Ermotti told Reuters, without providing a figure.

Separately, Ermotti said he plans to stay in his current role until the integration of Credit Suisse is completed, which could be early 2027, Bloomberg reported.

"I made a commitment to the board to stay at the very least until the integration is finished, so that means end of 2026, early 2027," Ermotti was quoted by Bloomberg as saying at an event.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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