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Credit Suisse Revamps Structure with Consolidation of Investment Biz

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   |    Thursday,July 30,2020

Credit Suisse is revamping its investment business through several new initiatives, which will streamline its banking structure.

The firm will create a more streamlined banking group called the global "Investment Bank" (IB).

IB will be created from consolidating its Integration of Global Markets, Investment Banking & Capital Markets and APAC Markets divisions. It will also include the creation of Global Trading Solutions and a globally integrated Equities platform

The firm projects the estimated run-rate savings of approximately CHF 400 million per annum, from 2022 onwards. The changes will be effective August 1, 2020.

Other changes will include:

• Combined Chief Risk and Compliance Officer (CRCO) function to create alignment across our control functions

• Launch new Sustainability, Research & Investment Solutions (SRI) function, affirming our commitment to providing our clients a leading offering

• Centralize and combine our Investment Solutions & Products (IS&P) and research capabilities

• Investments in growth initiatives in Swiss Universal Bank (SUB), International Wealth Management (IWM) and Asia Pacific (APAC)

Urs Rohner, Chairman of the Board of Directors of Credit Suisse Group AG, stated: “The reaffirmation of our existing group strategy builds on its success and is designed to ensure that we will continue to allocate the majority of capital deployed into wealth management. The new initiatives announced today further optimize that model and reflect that Credit Suisse remains resilient in uncertain markets. With these changes, I am confident Credit Suisse will continue to deliver sustainable shareholder value in the coming years.”

Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, said: “On the back of our successful journey of restructuring and repositioning, and as key secular trends accelerate, including digitalization and sustainability, we are today announcing a series of strategic initiatives to improve effectiveness and to generate efficiencies. This will allow for further investments and is expected to accelerate growth, while placing investment performance and sustainability at the heart of our strategy. I am certain that the measures we outline today are the right ones to further strengthen our integrated model, being a global leader in wealth management with strong global investment banking capabilities. These initiatives should also help to provide resilience in uncertain markets and deliver further upside when more positive economic conditions prevail.”