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UBS Investment Banking Head Becomes Santander's New CEO

Tom Burroughes Group Editor 26 September 2018

UBS Investment Banking Head Becomes Santander's New CEO

The investment banking head at UBS since 2012 becomes CEO of the Spanish bank.

Two of the world’s largest financial institutions have announced top-level appointments and departures, with Spain’s Santander recruiting a senior UBS executive, while the Swiss firm has chosen replacements from its own ranks.

Andrea Orcel, UBS’ investment banking head, is moving to become Santander’s chief executive, taking over from José Antonio Álvarez, who replaces Rodrigo Echenique as executive vice chairman when the latter retires at the end of this year. The changes, Santander said, mean Álvarez and Bruce Carnegie-Brown will be the group’s two vice chairmen, with Álvarez being the only one with an executive role.

UBS said that as a result of Orcel’s move, Piero Novelli and Robert Karofsky will jointly become co-presidents of the investment bank and members of the group executive board of UBS Group. Day to day, Novelli will primarily focus on corporate client solutions and Karofsky on investor client services.

Orcel is leaving an investment bank that, compared to the high-rolling years prior to the 2008 financial crisis, is not as prominent in the UBS empire as it was. Recent years have seen UBS, along with many peers, de-risk investment banking operations and put more focus on wealth management.

The Swiss firm praised Orcel, who has held his role since 2012. “In this time, he successfully executed the implementation of a new capital-light business model, delivering best-in-class profit before tax and top-tier return on attributed equity. This was achieved with unwavering discipline on costs and resources while continuing to invest for the future. Under Orcel's leadership, and in line with the Group, the IB also underwent a cultural transformation, putting client focus and sustainable performance at the center of the business.”

Novelli re-joined UBS firm in 2013 and is executive chairman, CCS, having previously served as global head of advisory and, before that, chairman of global M&A. Prior to this he was global co-head of M&A at Nomura, having worked as global head of M&A at UBS between 2004 and 2009. He first joined UBS from Merrill Lynch in 2004.

Karofsky joined the firm in 2014 and is global head of equities. Prior to joining UBS he was global head of equity trading at AllianceBernstein. He began his career at Morgan Stanley and joined Deutsche Bank as Head of North American equities in 2005.

Orcel has run the Investment Bank since 2012. In this time, he successfully executed the implementation of a new capital-light business model, delivering best-in-class profit before tax and top-tier return on attributed equity. This was achieved with unwavering discipline on costs and resources while continuing to invest for the future. Under Orcel's leadership, and in line with the Group, the IB also underwent a cultural transformation, putting client focus and sustainable performance at the center of the business.

“I want to personally thank Andrea for the outstanding work he did while at UBS. We worked together very well and, both as a friend and professionally, I congratulate him on his new appointment and wish him all the best. Rob and Piero are well placed to continue driving the success of the investment bank within our proven model,” Sergio Ermotti, UBS chief executive, said.

Santander
The Santander appointments are effective from the start of 2019, the firm said. And the changes are being made ahead of a new strategic plan to be unveiled next year.

The bank trumpeted how it has almost doubled the number of digital customers to 30 million from 16 million two years ago, while bolstering its capital buffer by €16 billion (as measured by its CET1 ratio, now at 10.8 per cent).

In September last year Santander said it was creating a new division to integrate its private banking and asset management businesses.

 

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