by Keystone / Urs Flueeler The Credit Suisse Group says it will shrink its investment bank and shift more resources to the wealth management unit. It is part of a restructuring plan intended to draw a line under a tumultuous year in which it was rocked by the Archegos Capital Management and Greensill scandals. The Zurich-based bank is exiting most of its prime services business after the implosion of Archegos and shifting about billion of capital from the investment bank to wealth management, according to a CS statement on Thursday. The bank is also re-organizing into four divisions and said that it will create a single wealth management unit. According to the Bloomberg financial news agency, chairman Antonio Horta-Osorio has spent the past six months conducting
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swissinfo Business and Economy, Business, Featured, newsletter
This could be interesting, too:
Eamonn Sheridan writes CHF traders note – Two Swiss National Bank speakers due Thursday, November 21
Charles Hugh Smith writes How Do We Fix the Collapse of Quality?
Marc Chandler writes Sterling and Gilts Pressed Lower by Firmer CPI
Michael Lebowitz writes Trump Tariffs Are Inflationary Claim The Experts
Keystone / Urs Flueeler
The Credit Suisse Group says it will shrink its investment bank and shift more resources to the wealth management unit.
It is part of a restructuring plan intended to draw a line under a tumultuous year in which it was rocked by the Archegos Capital Management and Greensill scandals.
The Zurich-based bank is exiting most of its prime services business after the implosion of Archegos and shifting about $3 billion of capital from the investment bank to wealth management, according to a CS statement on Thursday. The bank is also re-organizing into four divisions and said that it will create a single wealth management unit.
According to the Bloomberg financial news agency, chairman Antonio Horta-Osorio has spent the past six months conducting a root-and-branch review of Credit Suisse after disastrous risk lapses wiped out billions in profit, plunged the bank into crisis and led to an overhaul of top management. By shrinking the investment bank and shifting more resources to wealth management he’s seeking to move away from more risky activities in favor of more stable returns.
“Risk management will be at the core of our actions, helping to foster a culture that reinforces the importance of accountability and responsibility,” Horta-Osorio said in the statement.
The bank updated several targets and created several new ones. The bank is targeting a return on tangible equity – a key metric of profitability – of greater than 10% by 2024, compared with an earlier medium target of 10% to 12%. It’s aiming to distribute 25% of profit in 2022, after suspending its share buyback earlier this year.
Since taking over in April, Horta-Osorio has focused on rebuilding the ranks of the risk division, after failures led to the departure of former risk and compliance head Lara Warner.
You Might Also Like
What’s the real problem in our supply chains?
2021-10-22
Containers are piling up at ports, ships are waiting to offload cargo and store shelves are sitting empty. Are all the quick fixes enough to fix the real problems in our supply chains?
‘Fantasy Basel’ re-opens after a two-year Covid break
2021-10-11
The three-day Fantasy Basel festival for fans of films, games, comics, cosplay and manga has re-opened its doors after a two-year break.
Opponents challenge media aid law to referendum
2021-10-07
A cross-party group has handed in signatures opposing a support package for the media passed by parliament in June.
Risk of housing bubble in Switzerland persists
2021-08-11
A report by the leading Swiss bank UBS has found an increased risk of a real estate bubble forming in Switzerland’s housing market. The UBS Swiss real estate bubble index has risen from 1.78 to 1.90 points, in the second quarter of 2021, remaining in the ‘risk zone’, according to a report published on Tuesday.
Google challenges Swiss data cloud contract decision
2021-07-23
Google has appealed a recent Swiss decision to award a cloud-computing contract to five other digital firms. The tender process has also come under criticism by defenders of data sovereignty.
Swiss Start-Ups Show Resilience Despite Covid-19 Pandemic
2021-07-13
The number of Swiss start-ups launched has risen significantly in the first six months of 2021 while the number of companies filing for bankruptcy has decreased, studies have shown. In the first half of 2021 over 26,000 new companies were added to Switzerland’s commercial register, an increase of over 20% compared to the year before, a new report by Dun & Bradstreet has found.
How Swiss Asset Managers Opened their Doors to Lex Greensill
2021-06-01
In late 2014, David Solo lent A$12.2 million (CHF8.5 million) to a little-known supply-chain finance group with eye-catching claims. Greensill Capital, which was trying to muscle in on a corner of finance dominated for decades by banks, vowed to make “finance fairer” and declared that it would be “democratising capital”.
Electric Car maker feels the power of Switzerland
2021-05-11
Anton “Toni” Piëch, co-founder of the Swiss electric car manufacturer Piëch Automotive, tells SWI swissinfo.ch why he chose Zurich and how he intends to make his mark in a highly competitive market with battery-powered cars for “purists who love technology”.
Tags: Business,Featured,newsletter