Credit Suisse’s Risky Asia Loans Give UBS One More Worry
Backing emerging-market giants like Wanda and Vingroup would test nerves, but could lead to more business down the road.
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Photographer: Linh Pham/BloombergUBS Group AG’s top management has been busy after the bank’s shotgun marriage with Credit Suisse Group AG. Chief Executive Officer Sergio Ermotti is making big hiring and firing decisions, while wealth management head Iqbal Khan flies around the world to convince Credit Suisse’s rich clients to stay. Amid its rush to close the takeover as soon as late April, the Swiss bank also needs to make more mundane business decisions, such as what to do with some of the demanding and problematic corporate borrowers that come with the deal.
Across emerging Asia, Credit Suisse has built up an aggressive corporate loan book that UBS needs to sift through. The stricken bank has been backing Chinese mall operator Dalian Wanda Group’s ambitious turnaround plan and Vietnamese real estate giant Vingroup’s electric-vehicle manufacturing dream, among others.