Credit Suisse, which is worth about half of what it was five years ago, may be viewed as an attractive takeover target. Chairman Urs Rohner however doesn’t expect an unfriendly approach.
After a painful three-year restructuring process, Credit Suisse, Switzerland’s second-largest bank, still can detect no sign of a recovery of the valuation of its stock – which may attract the attention of a richer rival.
The chairman of Credit Suisse, Urs Rohner, told Swiss Sunday paper «Schweiz am Wochenende» (behind paywall) that he was happy about what the bank had achieved over the past three years and that he didn’t expect a rival approach anytime soon.
Keeping Its Promises
«Banks are active in a strongly regulated environment. Unfriendly takeovers can almost be ruled out,» Rohner said. He still is convinced that the share price of the bank is going to rise in recognition of its restructuring process. «We now have to show that we can reach the targets we promised to our shareholders,» Rohner added.
He also said that there was no need for further strategic adjustments and that the investment bank would remain an important part of the company. Risk-adjusted assets of about 60 billion Swiss francs ($59.9 billion) are about the right size for the business that strongly depends on the markets, he maintained.
European M&A Champion
Investment banking remained important not least to support the business with big clients in wealth management. In mergers and acquisitions, Credit Suisse was the only European bank capable of competing with U.S. rivals, Rohner concluded.
