UBS is divesting a portion of the Credit Suisse business it acquired last year by selling the fallen bank’s 50% stake in credit card provider Swisscard.
According to a statement from Swisscard, UBS will transfer its 50% ownership in the company to its joint venture partner, American Express.
While the financial details remain undisclosed, the transaction is part of UBS’s broader strategy to streamline operations after its emergency takeover of Credit Suisse in 2023.
What changes for cardholders?
American Express (Amex) will take full ownership of Swisscard after acquiring UBS’s 50% share.
This transition will make Amex the sole proprietor, allowing it to continue issuing American Express, Mastercard, and Visa cards in Switzerland.
Swisscard assured that the existing cardholders, merchants, and partners would not face immediate changes.
Credit Suisse cardholders will be moved to UBS’s platform in 2025, as UBS shifts its focus to align with its new operational setup.
UBS sells stake in Swisscard
The divestment of its 50% share in Swisscard is part of UBS’s ongoing effort to optimize its operations following the acquisition of Credit Suisse.
UBS highlighted that issuing credit cards through Swisscard no longer fits with its operational and strategic goals.
The shift allows UBS to concentrate on integrating Credit Suisse’s assets that complement its broader business model while divesting those that do not align with its long-term plans.
UBS has been selectively divesting parts of the Credit Suisse business acquired during last year’s emergency takeover. In June, UBS sold its stake in Credit Suisse Securities (China), and by July, it reached an agreement to sell an insurance-linked investment arm of Credit Suisse.
The sale of Swisscard’s 50% stake marks another strategic step as UBS refines its portfolio to ensure synergy between its new and existing operations.
Credit Suisse cardholders will transition to UBS’s credit card platform by mid-2025. UBS assured that no action is required from cardholders during this period, as they will receive information about new card issuance well in advance.
The bank emphasized that this transition would be seamless, ensuring minimal disruption for clients during the changeover. The shift aims to integrate Credit Suisse’s card business into UBS’s infrastructure smoothly.
Swisscard to maintain operations under Amex ownership
Despite the changes, Swisscard will continue its operations in Switzerland, issuing cards under the American Express, Mastercard, and Visa licenses. This move will allow Swisscard to maintain its existing business relationships while leveraging the backing of American Express as a sole owner.
This strategic adjustment by UBS and American Express seeks to ensure continuity for Swisscard’s operations and services within the Swiss market.
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