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UBS plans to sell Credit Suisse’s investment bank in Turkey

Picture of UBS bank
The Swiss lender is currently holding talks with potential buyers to evaluate interest in the business. KEYSTONE/© KEYSTONE / MICHAEL BUHOLZER

UBS Group AG is considering selling Credit Suisse’s investment bank unit in Turkey as it scales back operations of the former rival that don’t fit its business model, according to people familiar with the matter.

The Swiss lender is currently holding talks with potential buyers to evaluate interest in the business, said the people, asking for anonymity discussing internal deliberations.

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Separately, it also started a process to carve out Credit Suisse’s wealth management operations in the country, though it has yet to decide on the future of that business, said some of the people. It aims to complete the process before the legal merger of the two banks is finalised, which is expected in the second quarter, they said.

A spokesperson for UBS declined to comment.

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UBS is scaling back Credit Suisse units, particularly the investment bank, as it seeks to cut risk following the government-brokered takeover. International brokerages have been exiting Turkey or downsizing in the country, with firms such as Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co. cutting staff in Istanbul or shutting down trading or research units in the past few years. 

UBS decided to close its own equity brokerage in Turkey in 2017 as part of cost cutting plans. The Swiss bank still has wealth management operations in the region.

©2024 Bloomberg L.P.

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