In a strategic move aimed at streamlining its operations, UBS has sold its 50% stake in Swisscard to its joint venture partner, American Express. This decision, part of UBS’s post-Credit Suisse acquisition restructuring, marks a significant shift in the Swiss credit card landscape and demonstrates UBS’s focus on aligning with its core banking priorities.
The Strategic Background
UBS inherited the stake in Swisscard as part of its emergency takeover of Credit Suisse in 2023, a pivotal moment in the Swiss banking sector. Swisscard, which issues credit cards under the American Express, Mastercard, and Visa brands in Switzerland, has been a joint venture between American Express and Credit Suisse for years. However, with UBS’s acquisition of Credit Suisse, the global banking giant has been divesting non-core assets as it seeks to consolidate operations and focus on its strategic goals.
The sale of the Swisscard stake is part of this broader divestment strategy, which has seen UBS shed several parts of the former Credit Suisse’s portfolio in recent months, including securities and insurance-linked businesses. UBS has expressed that managing credit card issuance through Swisscard does not align with its long-term priorities
American Express Takes Full Control
By acquiring UBS’s 50% stake, American Express becomes the sole owner of Swisscard. This consolidation gives Amex more direct control over its card issuance and customer relationships in Switzerland, strengthening its foothold in a key European market. The Swisscard brand will continue to operate under its current licenses, including those for Mastercard and Visa, but its American Express card operations are expected to receive enhanced focus with Amex at the helm.
For American Express, this acquisition not only represents an opportunity to streamline its services in Switzerland but also signals a broader commitment to growing its presence in the region.
Impact on Cardholders
Despite the ownership change, Swisscard reassured its clients that there would be no immediate disruptions. Cardholders, merchants, and partners will continue to enjoy uninterrupted services, and any transitions will be handled gradually. UBS also announced that Credit Suisse-branded credit card customers will be seamlessly transitioned to its own credit card platform by the first half of 2025, with no action required from customers
A Broader Restructuring Move
This transaction is emblematic of UBS’s strategic reorganization following its takeover of Credit Suisse. By divesting from businesses like Swisscard, UBS is sharpening its focus on core competencies, particularly wealth management and investment banking. The financial terms of the deal were not disclosed, but it is clear that this move allows UBS to distance itself from non-essential operations inherited through Credit Suisse.
For American Express, acquiring full ownership of Swisscard is a natural step that allows for streamlined decision-making and an enhanced focus on its card operations in the Swiss market.
Conclusion
UBS’s sale of its Swisscard stake to American Express is a win-win for both institutions. UBS continues to refine its post-merger strategy by offloading non-core assets, while American Express strengthens its presence in Switzerland with full control over Swisscard. This deal underscores the broader realignment in the banking sector as major institutions adapt to shifting priorities and market dynamics.
As the dust settles from UBS’s integration of Credit Suisse, such transactions will likely be the norm as the banking giant consolidates and refines its focus for the future.