A UBS logo is seen on a Swiss bank branch in Lucerne, Switzerland, on June 14, 2024. The image was captured by Reuters photographer Denis Balibouse and is part of a file photo collection.
In a significant business move, UBS has decided to sell its 50% stake in Swiss Card, a credit card provider, to American Express. This decision comes in the wake of UBS’s acquisition of Credit Suisse, the struggling Swiss bank, which included Swiss cards as part of its portfolio.
The sale, announced by Swiss Card in a recent statement, sees American Express taking full control of the company. Although the financial terms of the deal remain undisclosed, it marks another step in UBS’s restructuring efforts as it manages the assets it inherited from Credit Suisse. Once the transaction is complete, UBS will transfer Credit Suisse’s credit card clients to its credit card platform.
Swiss Card emphasized that it will continue to issue other cards under the American Express, Mastercard, and Visa brands in Switzerland. Furthermore, Swiss card will keep managing American Express operations within the country. The company reassured its cardholders, merchants, and partners that there would be no immediate changes or disruptions to their services.
This sale is part of UBS’s broader strategy to streamline its business following its emergency takeover of Credit Suisse last year. Since the acquisition, UBS has been selling off various assets to better align with its operational structure and goals. In June, UBS sold its stake in Credit Suisse Securities (China), and in July, it reached an agreement to sell an insurance-related investment unit of Credit Suisse to that unit's management.
UBS has made it clear that while it remains committed to the credit card business, the Swiss card arrangement didn’t fit with the bank’s operational and strategic priorities, particularly after assuming legal responsibility for Credit Suisse. UBS’s focus is now on integrating the Credit Suisse assets in a way that best supports its long-term vision and objectives.
The bank reassured existing Credit Suisse credit cardholders that no immediate action is required from their side. UBS stated that these customers will receive new credit cards in the first half of 2025, as their accounts are transitioned to the UBS credit card platform. Cardholders will be informed well in advance of any changes.
In summary, UBS’s sale of its 50% stake in Swiss card is part of a larger restructuring process following the acquisition of Credit Suisse. American Express will become the sole owner of Swiss cards, which will continue to issue credit cards under major brands in Switzerland. UBS remains committed to its credit card operations but will manage these activities independently, transferring Credit Suisse clients to its system in 2025. No immediate impact is expected for current cardholders.
