Credit Suisse to create global Investment Bank as part of key changes

Maria Nikolova

Credit Suisse will create a global Investment Bank (IB) to build a client-centric global platform with critical scale for corporate, institutional and entrepreneurial clients.

Credit Suisse Group AG (SWX: CSGN) today announced a set of key initiatives intended to improve effectiveness, drive efficiencies and capture future growth opportunities.

The list of major changes with effect from August 1, 2020, includes the creation of a global Investment Bank (IB) to build a client-centric global platform with critical scale for corporate, institutional and entrepreneurial clients. It will integrate Global Markets, Investment Banking & Capital Markets and APAC Markets.

Th initiatives include the creation of Global Trading Solutions and a globally integrated Equities platform. GTS will combine Credit Suisse’s International Trading Solutions and APAC Solutions to maximize the capabilities of Credit Suisse’s wholesale business for corporate, institutional and entrepreneurial clients. It is set to allow for further global technology integration, a unified risk set-up and the delivery of a wider range of products, greater scale and better pricing for customers.

Credit Suisse will also establish combined Chief Risk and Compliance Officer (CRCO) function to create alignment across its control functions.

Credit Suisse explains that the initiatives necessitate some changes within its executive leadership team. On July 29, 2020, the Board of Directors affirmed the amended Executive Board roles of Brian Chin and Lara Warner and the new role of Lydie Hudson.

As a result of these changes, David Miller will step down from the Executive Board. David Miller is committed to continuing his career at Credit Suisse.

Also today, Credit Suisse reconfirmed and/or update a series of financial ambitions. The company targets Return on Tangible Equity of 10 to 12% in the medium-term, as well as CET1 ratio of approximately 12%.

The Board of Directors intends to propose to pay out the second half of the 2019 dividend, subject to the approval of Credit Suisse’s shareholders at an Extraordinary General Meeting (EGM) to be held on November 27, 2020 and subject to market and economic conditions. Subsequent to the EGM, and subject to market and economic conditions, the Board of Directors intends to review the share buyback program.

In the medium-term, Credit Suisse expects to distribute at least 50% of net income in a normalized environment, subject to market and economic conditions; with sustainable ordinary dividend expected to increase by at least 5% per annum.

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