UBS to sell its stake in Swisscard to American Express

At the time of the announcement, the terms of the deal were not disclosed, however, UBS is set to sell its 50% stake in Swisscard to American Express, with the latter becoming the sole owner of the company. In addition, Credit Suisse customers will transfer to the existing UBS credit card platform. Swisscard also mentioned in its statement that it intends to continue to issue all other cards it provided under the American Express, Mastercard, and Visa licences, continuing to operate the American Express business in Switzerland.

Currently, UBS is working towards divesting parts of Credit Suisse, with the financial institution mentioning its commitment to its credit card business even if issuing credit cards in Switzerland via Swisscard did not align with operational setups and strategic priorities.

Moreover, representatives from Swisscard underlined that the current move would not have a near-impact on any cardholders, merchants, or partners. Also, cardholders do not need to take any action, with clients holding Credit Suisse branded credit cards to be informed about the new card issuance during 2025.

UBS’s acquisition of Credit Suisse

Back in June 2023, UBS announced the completion of its acquisition of Credit Suisse, with the merged entity being ready to operate as a consolidated banking group. UBS Group AG was set to oversee two distinct parent companies, including UBS AG and Credit Suisse AG, with each institution continuing to have its subsidiaries and branches, as well as clients and counterparties.

Fast forward to February 2024, USB revealed its intentions to cut another USD 3 billion in costs following the acquisition of Credit Suisse. The cost-cutting came after the emergency acquisition of Credit Suisse, with these efforts aiming to ensure that the deal would pay off for UBS. In addition, the savings were set to support the absorption of Credit Suisse while assisting UBS’s development strategy, which involved investments in talent, products, and services.