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 car camera uses AI to detect pedestrians 100 times faster
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A new type of car camera has been developed that will recognise obstacles 100 times faster than previous driver-assistance systems.
Switzerland ‘extremely concerned’ about spiralling violence in Middle East
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Switzerland has strongly condemned Hamas’ recent rocket fire on Israel and Israel’s attacks on a camp for displaced people in Rafah.
Switzerland may triple tuition fees for foreign university students
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Foreign students at ETH Zurich and EPFL may soon have to pay at least three times as much as Swiss students in tuition fees.
Female climate activists could report Switzerland to Council of Europe
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The KlimaSeniorinnen association (the Climate Senior Women) is urging the Swiss government to respect the European court’s recent decision.
Horizon Europe is partially open again to researchers in Switzerland
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With renewed negotiations with the EU Commission, and thanks to CHF600 million in federal funds, Swiss researchers can again apply for some grants.
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Swiss political parties want to ban Hamas and classify it as a terrorist organisation in Switzerland, which would prevent financing and propaganda activity.
Swiss public prosecutor calls for Tariq Ramadan to be jailed for rape
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A three-year prison sentence for Tariq Ramadan is being demanded for the rape of a woman in a hotel room in Geneva in October 2008.
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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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