Financial Results

Credit Suisse "Well On Track" With Business Review

Tom Burroughes, Group Editor, London, 26 September 2022

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Credit Suisse is slimming down some of its operations in order to focus more on wealth management and to repair its profitability after a series of setbacks and losses that have seen the exit of CEO Thomas Gottstein and a number of other C-suite changes. 

Credit Suisse, which is in the midst of a restructuring to recover from losses, today said it is “well on track” with its review, including potential asset sales and divestitures.

The Zurich-listed bank said it will give markets more updates when it reports third-quarter 2022 results on 27 October. “While there has been a heightened level of media and market speculation about the potential outcome over the past days, the bank is committed to providing further details on the progress of the strategic review, including measures to strengthen the wealth management franchise, transform the investment bank into a capital-light, advisory-led banking business and more focused markets business, evaluate strategic options for the Securitized Products business, which includes attracting third-party capital, as well as reduce the group’s absolute cost base to below SFr15.5 billion ($15.74 billion) in the medium term,” it said in a statement. The bank said that its board of directors and the executive board are considering alternatives that “go beyond the conclusions of last year’s strategic review”.

“The aim is to create a more focused, agile group with a significantly lower absolute cost base, capable of delivering sustainable returns for all stakeholders and first-class service to clients,” it continued.

Earlier in September, the bank said it had agreed to sell its trust business to Butterfield and Gasser Partner.

Credit Suisse is slimming down some of its operations in order to focus more on wealth management and to repair its profitability after a series of setbacks and losses that have seen the exit of CEO Thomas Gottstein and a number of other C-suite changes. 

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