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Credit Suisse sticks to strategic overhaul despite “challenging” environment

FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters at the Paradeplatz square in Zurich, Switzerland October 1, 2019. REUTERS/Arnd Wiegmann

BERLIN (Reuters) – Credit Suisse is sticking to its plans to overhaul strategy and bolster risk management despite challenges created by turmoil in the current market environment, the bank said on Tuesday.

A series of losses and scandals have hammered Credit Suisse’s share price since March 2021, prompting ousters and a strategic overhaul announced in November to rein in its investment bank and focus further on managing the fortunes of the world’s rich.

Ahead of an update to investors, the bank on Tuesday said it was sticking to that plan, while extending the savings it hopes to achieve through technology.

“Despite the challenging market environment, we remain firmly focused on the execution of our strategic plan during the transition year 2022 and on reinforcing our risk culture – crucially, while staying close to our clients,” Chief Executive Thomas Gottstein said in a statement.

“At the same time, we are continuing to drive the bank’s digital transformation, which is key to building a robust, scalable and agile organization that is fit for the future.”

In presentation slides, the bank said it planned to generate 200 million Swiss francs ($209.1 million) in cost savings through technology in each of the years 2022 and 2023, along with a further 400 million francs in the mid-term.

The bank in June warned a further loss was likely for the second quarter, the third quarter in a row for which Switzerland’s second-largest bank has issued a profit warning.

Credit Suisse at the time said it aimed to bring cost savings forwards, speeding up measures targeting 1.0 billion-1.5 billion Swiss francs in structural cost savings annually by 2024.

It plans to inform investors about the delivery of its strategy in risk management, compliance, technology and operations and wealth management at its investor day on Tuesday.

($1 = 0.9563 Swiss francs)

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