UBS Signals Confidence in Private Credit Holdings Amid Sector Valuation Concerns

UBS CFO Todd Tuckner addresses private credit risks and provides updates on the final stages of the Credit Suisse integration and Swiss interest rate impacts.

By: AXL Media

Published: Mar 18, 2026, 9:48 AM EDT

Source: Reuters

Navigating the Private Credit Landscape

The private credit sector has recently come under intense scrutiny from global regulators and investors alike. Market sentiment has been dampened by valuation discrepancies and the high-profile collapses of entities such as auto-parts supplier First Brands and the car dealership group Tricolor. Despite these headwinds, Tuckner emphasized that UBS is not concerned with its specific standing in the market. This stance is significant as private credit has become an increasingly large component of global bank balance sheets, often operating with less regulatory oversight than traditional lending.

Interest Rate Pressures and Profitability Targets

Beyond private credit, Tuckner addressed the challenges posed by the Swiss National Bank’s current monetary policy. With the benchmark interest rate sitting at 0%, the bank is facing significant pressure on its net interest income. Tuckner admitted that while the group is sticking to its overall cost-income ratio targets for the current year, the Swiss domestic business specifically may fall slightly short of its 2026 underlying targets. This transparency highlights the tightrope global banks must walk when operating in low-to-zero interest rate environments where traditional profit margins are squeezed.

Final Stages of the Credit Suisse Integration

A major milestone is approaching for the Swiss banking giant as it nears the end of its historic 2023 acquisition of Credit Suisse. Tuckner revealed that the migration of Credit Suisse clients to UBS systems within Switzerland is expected to conclude in the coming days. This move represents the final phase of global client migrations. Once finished, it will allow UBS to move into the definitive "decommissioning" phase of the old Credit Suisse IT platforms, a transition expected to yield substantial operational cost savings for the combined entity.