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.
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Credit Suisse lurches from one risk management crisis to the next
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Are scandals at Archegos and Greensill an unlucky coincidence or symptomatic of a wider failing at Credit Suisse?
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.
Swiss authorities announce cost-cutting in asylum sector
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The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
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The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
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In the winter season up to April 2024, railway and cable car operators ferried 3% more visitors compared to the previous winter, and 5% more than the five-year average.
Rhine flooding: Swiss to invest CHF1 billion with Austria
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As part of an international agreement with Austria, the Swiss government wants to pump CHF1 billion ($1.1 billion) into flood protection measures along the Rhine over the next three decades.
Swiss government proposes CHF10 million UNRWA donation
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After months of debate, Switzerland plans to give CHF10 million ($11 million) to the UN agency this year, rather than the CHF20 million initially foreseen.
Swiss study: insects mainly migrate at midday and dusk
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A study led by the Swiss Ornithological Institute in canton Lucerne is helping to better understand the movement patterns of migratory insects.
Red Cross: 22 staff killed in Middle East since October
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The Red Cross and Red Crescent network in Gaza and Israel has lost 22 staff members since last October, the Swiss Red Cross (SRC) said on Wednesday.
Dortmund’s Kobel is first Swiss goalie in Champions League final
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Borussia Dortmund’s Gregor Kobel has achieved history by becoming the first Swiss goalkeeper to reach a Champion’s League final.
University students in Switzerland join Gaza protest wave
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Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
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Swiss open investigation into Mozambique loan scandal
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Swiss prosecutors have opened an investigation into a suspected money laundering scandal involving loans to state-owned companies in Mozambique.
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Credit Suisse will face a trial over its role in Mozambique’s $2 billion “tuna bonds” scandal, the latest in a series of blows for the bank.
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