UBS CEO Sergio Ermotti on Wednesday said people with concerns about the size of the bank's balance sheet are getting "indoctrinated" by academics and should "do their homework."
The bank's share price has recovered from below 17 Swiss francs ($19.69) per share in the aftermath of the deal to over 25 Swiss francs as of Wednesday morning.
However, the new entity's combined balance sheet is estimated to be around twice the size of the entire GDP of Switzerland, raising concerns about the concentration of risk in the Swiss economy.
"If you look at risk-weighted assets as a percentage of GDP or as a percentage of our balance sheet, you will discover that the new UBS is de facto very low risk, very focused business model.
The risk we have is in Swiss mortgages, in Lombard loans, in stuff that is very low risk," he said.
Persons:
Sergio Ermotti, Ermotti
Organizations:
UBS, Credit Suisse, Swiss, CNBC, Economic
Locations:
Swiss, Switzerland, Davos, Lombard