Ospel told Finanz und Wirtschaft he saw no compelling reason to expand from banking into insurance on a broad scale, a hybrid approach often called allfinance or bancassurance.

"At the global level, we do not have an all-finance strategy," Ospel said.

The approach is taken by some UBS rivals such as Credit Suisse Group and Holland's ING Groep NV.

UBS is inheriting insurance ventures from the old Union Bank of Switzerland and Swiss Bank Corp, which joined forces to form the new bank.

The old UBS had a 25 per cent stake in Swiss Life and SBC had a limited joint venture with Zurich Group. The new UBS, which is completing its formal merger this weekend, has made no decision on whether to maintain or change these ventures. "I am not revealing any secrets when I say thatwe are not convinced by a global allfinance strategy, except in insuring financial risks and in the asset-rich business of life insurance," Ospel said. "None of the examples, whether in the Netherlands, England, the United States or Switzerland, has provided a convincing story that would force us to act," he said.

Ospel said UBS would concentrate instead on getting value out of consolidating its financial business. "The principle is that we want to concentrate on ventures that correspond to our core competencies," he said. "But there could be strategic motives that convince us to become more active across the borders in specific insurance activities," he added.

Ospel also said that they have no acquisition plans in the United States, although a purchase cannot be ruled out in on-shore private banking. He said part of the new UBS's strategy was expansion of investment banking, under the brand name Warburg Dillon Read (WRD), and institutional asset management by UBS Brinson.

This expansion strategy wasglobal and included North America, he said when asked about the US market. "No acquisitions are planned," he said about WRD and UBS Brinson."We are convinced that with our 5,500 employees in North America we have a platform which we can build upon," Ospel said.

In private banking, Ospel reiterated that UBS aimed to expand its on-shore presence outside Switzerland. "The possibility cannot be ruled out that an acquisition could take place here among other things. But there is nothing in the pipeline," Ospel said. Meanwhile, a delay in the New York state approval for the merger has brought costs of 300 million Swiss francs ($196.5 million), Ospel said. He said they expected a quicker decision from the New York State Banking Department.